Fugitive diamond merchant Mehul Choksi, the primary accused in the Punjab National Bank (PNB) loan fraud case, is currently in Belgium undergoing medical treatment for a suspected cancer diagnosis, a special court in Mumbai was apprised on Tuesday.
Choksi’s legal representative, Advocate Vijay Agarwal, informed the court of his client’s health condition, stating, “He is presently in Belgium for medical treatment.” Agarwal further indicated his intent to submit a formal application to officially document Choksi’s medical condition in the court record.
The special court, constituted under the Prevention of Money Laundering Act (PMLA), is presently adjudicating the Enforcement Directorate’s (ED) petition to declare Choksi a Fugitive Economic Offender (FEO). If the court grants this designation, the Indian government would be empowered to initiate legal proceedings for the confiscation of Choksi’s assets under the Fugitive Economic Offenders Act, 2018.
Choksi, alongside his nephew Nirav Modi, several family members, employees, and bank officials, was charged by both the ED and the Central Bureau of Investigation (CBI) in 2018 for allegedly orchestrating a large-scale financial fraud at PNB’s Brady House branch in Mumbai. The allegations suggest that Choksi and his associates fraudulently secured Letters of Undertaking (LoUs) and Foreign Letters of Credit (FLCs) in connivance with bank officials, circumventing established banking procedures and causing substantial financial losses to the institution.
Since absconding from India in 2018, Choksi has been residing in Antigua and Barbuda, where he acquired citizenship. In contrast, Nirav Modi was formally declared an FEO in 2019, while the ED’s petition to grant Choksi the same designation has remained pending since 2018.
To date, the ED has filed three charge sheets against Choksi, elaborating on his alleged complicity in the multi-billion-dollar banking fraud. In 2019, the agency informed the Bombay High Court that Choksi was a “fugitive and absconder,” further reinforcing the legal rationale for his extradition and the seizure of his assets. This case remains one of India’s most prominent financial fraud investigations, underscoring significant legal, diplomatic, and jurisdictional challenges associated with pursuing economic fugitives who have sought refuge in foreign nations.
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