Mehul Choksi, diamond tycoon, was arrested by the Belgium police, earlier this week. Soon after Choksi’s arrest, his lawyer Vijay Aggarwal claimed that the diamond tycoon is “not a fugitive“. He called him the cancer patient.
Notably, Choksi is being investigated in Rs 13,500-crore Punjab National Bank loan fraud case. He has been evading authorities since 2018.
Aggarwal stated that his client ain’t considered a fugitive under Indian law since he maintained contact with investigation agencies and cooperated fully. “We have filed multiple applications offering that he will join the investigation virtually. Despite his willingness, he couldn’t travel back due to serious health constraints,” said Aggarwal.
Aggarwal said that he will challenge Choksi’s arrest and fight against the extradition request on humanitarian grounds.
“This is a political case. My client is not a flight risk and is gravely ill. He’s undergoing treatment for cancer and has consistently offered to cooperate through video conference. His human rights will be severely compromised if he is extradited to India. We are filing an appeal immediately,” he said.
Mehul Choksi Not A “Fugitive”?
Choksi has not been officially declared a Fugitive Economic Offender (FEO) yet, according to a report by news agency PTI. The report said that the Enforcement Directorate (ED) filed a plea in this regard in 2018, but it’s still pending in a Mumbai court, delaying the formal designation.
“The court is kept busy with frivolous applications, and hearing on our application to declare him (Choksi) an FEO has been adjourned for the past seven years,” an ED officer said after the hearing was postponed again in February.
Choksi had challenged the ED’s plea in the Bombay High Court. He alleged that the agency had not followed proper procedure before filing the plea. However, in September 2023, the High Court rejected Choksi’s plea, ruling that the investigative agency had followed the proper procedure under the Fugitive Economic Offender (FEO) Act. Despite all this, the hearing on declaring Choksi a FEO could not commence.
Choksi left India under suspicious circumstances in January 2018. He is often referred to as a “fugitive” in government documents and court, but is not officially declared fugitive under the Indian law.
Rs 13,500 Crore Bank Fraud Case
Choksi is the owner of Gitanjali Group. He is alleged with a Rs 13,500-crore PNB bank loan fraud case. Choksi’s nephew Nirav Modi is also accused in the case. In 2018, the ED and CBI filed charges against Mehul Choksi, Nirav Modi, their family members, employees, and bank officials in a scam case at the Punjab National Bank’s Brady House branch in Mumbai. Nirav Modi is already declared a Fugitive by a special court and has been in prison in London since 2019.
Will It Impact His Extradition?
Choksi was arrested by the Belgium police, earlier this week. According to media reports, his fugitive designation won’t affect Nirav Modi’s extradition process. However, authorities would be able to confiscate Choksi’s assets in India and abroad, once he is declared a fugitive, aiding further legal action against him.
Legal Provisions
Supreme Court’s advocate Shailendra Pratap Singh told News24 that Fugitive Economic Offenders Act came into force from 31st July 2018. He explained that an individual can be declared a Fugitive, if a warrant has issued against them for an offence involving Rs 100 crore or more and have left India, refusing to return.
He said that under the Fugitive Economic Offenders Act 2018, Section 4 allows the Director or Deputy Director to file an application to declare an individual a Fugitive Economic Offender. Shailendra further explained, “after getting the application under Section 4, the Special Court issues notice under Section 10 to the individual, requiring them to appear in person.”
“However, under Section 11(2), the Special Court may allow the individual to appear through a lawyer and grant a one-week time frame to file a reply to the application seeking a Fugitive Economic Offender declaration,” remarked Shailendra. “The court after hearing both parties and upon satisfaction of the material provided by the Director declare the individual as Fugitive Economic Offender, under section 12,” he said.
“Under Section 16, the Director is mandated to prove that an individual is a Fugitive Economic Offender,” said Shailendra, adding, “section 17 provides that an appeal will lie to the High Court on facts and on law against declaration of Fugitive Economic Offender by the special court.”
