Bombay High Court rejects plea by Mehul Choksi challenging ED application to declare him a fugitive economic offender

The Bombay High Court Thursday rejected the petitions filed by businessman Mehul Choksi challenging the applications of the Enforcement Directorate (ED) to declare Choksi a fugitive economic offender (FEO). ED had approached the special court under the Prevention of Money Laundering Act (PMLA) with an application under Sections 4 and 12 of the FEO Act to declare Choksi an FEO and confiscate his properties. 

As per the 2018 law, a person can be declared FEO if a warrant has been issued against him for an offence involving an amount of ₹100 crore or more and if the person has left the country and refuses to return.Choksi is an accused in the Punjab National Bank (PNB) fraud case worth ₹14,500 crore.In January 2020, the High Court had granted a stay on the final order to be passed by the Special Court proceedings.In August this year, ED moved the High Court seeking a review of this stay claiming Choksi had already fled the country. Advocates Hiten Venegaonkar for ED argued that Choksi is an accused under the PMLA Act and prosecution against him was pending due to the stay order of the High Court.Hence, Venegaonkar prayed that the High Court review its stay order.

He was allegedly involved in stock market manipulation in 2013. In late May 2021, he went missing from Antigua and Barbuda. Choksi claims that he was kidnapped from Antigua by agents of the Indian state,while others stated that he fled the country. After being found and arrested in Dominica under charges of illegal entry he was then returned to Antigua and Barbuda on interim bail for medical treatment.In May 2022 the charge of illegal entry was dropped by the Dominican Government.