- Court said SFIO probe does not block ED action under FEO Act
- Choksi accused of ₹13,000 crore Punjab National Bank fraud
- ED alleged plea was filed only to delay proceedings
- Nirav Modi remains jailed in London; Choksi faces extradition in Belgium
GG News Bureau
Mumbai, 24th Dec: A special court in Mumbai has rejected absconding diamond trader Mehul Choksi’s plea seeking to quash proceedings to declare him a Fugitive Economic Offender (FEO) in the multi-crore Punjab National Bank (PNB) fraud case.
Judge A.V. Gujarathi ruled that the ongoing investigation by the Serious Fraud Investigation Office (SFIO) would not hinder action by the Enforcement Directorate (ED) under the Fugitive Economic Offenders Act. The court held that there is no legal bar preventing the ED from proceeding independently under the FEO Act even if other agencies are probing related offences.
Choksi had argued that the ED could not proceed as the SFIO was already investigating the same allegations under the Companies Act. However, ED’s special public prosecutor Kavita Patil clarified that the restriction under the Companies Act applies only to offences under that law and does not extend to action under other statutes.
The ED also alleged that the plea was filed to delay proceedings, a contention the court accepted while dismissing Choksi’s application.
Under the FEO Act, individuals accused of economic offences involving over ₹100 crore who evade Indian jurisdiction can be declared fugitives, leading to confiscation of their assets.
Mehul Choksi and his nephew Nirav Modi are the prime accused in the ₹13,000 crore PNB fraud case involving fraudulent Letters of Undertaking and Foreign Letters of Credit. While Nirav Modi remains lodged in a London jail, Choksi is currently facing extradition proceedings in Belgium.
