Fugitive diamond merchant Mehul Choksi, a prime accused in the ₹13,500 crore Punjab National Bank scam, has filed an application before the Special PMLA Court in Mumbai seeking dismissal of the Enforcement Directorate’s plea to declare him a Fugitive Economic Offender.
Through his counsel, Advocate Vijay Aggarwal, Choksi has argued that the ED’s bid to label him as an FEO is “legally untenable” and fails to meet the statutory requirements outlined in the Fugitive Economic Offenders Act, 2018.
Choksi’s Key Argument
Choksi, who was recently arrested in Belgium on the basis of a non-bailable warrant issued by an Indian court and an official extradition request made by the Indian government, is currently lodged in a prison in Antwerp.
Aggarwal contended that Choksi is now in “constructive custody” of Indian authorities and, therefore, cannot be treated as a fugitive. “How can someone be considered a fugitive when he has been arrested at the behest of India and is in custody due to Indian proceedings?” Aggarwal asked, speaking to ANI.
Legal Grounds Challenged Under FEO Act
According to the Fugitive Economic Offenders Act, a person must meet two criteria to be declared an FEO:
Departure from India to avoid prosecution, and
Refusal to return to face legal proceedings.
Choksi’s legal team asserts that neither condition applies in his case. Aggarwal stated:
Choksi left India for medical treatment in New York with police clearance, and no case was pending against him at that time.
His alleged refusal to return is invalidated by a 2021 Dominican court order, which barred him from leaving Antigua after an alleged abduction attempt. The order was passed in the presence of Indian officials, including the CBI, indicating that Indian authorities were aware of and involved in the restrictions placed on his movement.
“Effectively Under Indian Jurisdiction”
Choksi’s application further emphasized that since he is in prison in Belgium on the strength of India’s extradition request, he is effectively under Indian jurisdiction. Judicial precedents, Aggarwal argued, recognize such custody as valid under Indian law, negating the basis of the FEO plea.
“The FEO proceedings have been pending for years without resolution. Now that my client is in custody pursuant to Indian charges, there is no legal justification to continue the FEO case,” he said.
Parallel Legal Battle In Belgium
Meanwhile, Choksi is also contesting his arrest in Belgium. A petition filed before the Belgian Court of Appeal, prepared by Advocate Aggarwal and submitted by Choksi’s local legal team, claims that the arrest violated Belgian legal procedures and fundamental rights.
The plea alleges that:
Belgian authorities failed to follow due process,
There was a breach of natural justice, and
His basic legal protections were disregarded.
Choksi has sought immediate release, citing these procedural lapses. His bail plea was earlier rejected by a three-judge bench of the Belgian appellate court, which conducted the hearing in Dutch. The next hearing date is yet to be fixed.
Background
Choksi is one of the key accused in the massive PNB fraud case, in which bank officials and businessmen allegedly colluded to secure fraudulent guarantees worth thousands of crores. He fled India in January 2018 and has since been fighting multiple legal battles abroad to avoid extradition.
The latest developments signal a strategic legal push from Choksi’s camp, aiming to dismantle India’s legal efforts to bring him back by challenging the legitimacy of ongoing proceedings on both domestic and international grounds.
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