ED Tells Court Mehul Choksi Opposing Extradition in Belgium, Not Willing to Return to India
GG News Bureau
New Delhi, 19th Sept: The Enforcement Directorate (ED) informed a special court on Thursday that fugitive diamantaire Mehul Choksi, the main accused in the multi-crore Punjab National Bank (PNB) fraud case, is not willing to return to India and is actively opposing extradition proceedings in Belgium.
The agency made this submission while contesting Choksi’s plea to halt proceedings aimed at declaring him a Fugitive Economic Offender (FEO) under the Fugitive Economic Offenders Act, 2018.
Choksi Resisting Extradition
According to the ED, Choksi is not cooperating with Indian authorities and has been using legal remedies abroad to block efforts for his return. The agency stressed that his plea before the Indian court was invalid since he continues to evade justice and challenge extradition in Belgium.
“Choksi is opposing extradition proceedings in Belgium. His request to stop the FEO process is not legally maintainable and should be dismissed,” the ED submitted before the court.
Implications of FEO Declaration
If declared an FEO, Indian investigative agencies would be empowered to confiscate Choksi’s assets both in India and overseas. This could significantly tighten the noose around the fugitive businessman, who fled India in 2018 after being accused of defrauding Punjab National Bank of over ₹13,000 crore along with his nephew Nirav Modi.
The ED made it clear that the FEO proceedings cannot be concluded unless the accused appears before the court. Since Choksi has not returned to India, the process must continue under the provisions of the special law.
ED Rejects Choksi’s Plea
The ED urged the special court to dismiss Choksi’s plea, noting that his attempts to block the process undermine the very intent of the FEO Act, which was designed to deter high-profile economic offenders from evading justice by staying abroad.
Legal experts point out that once Choksi is formally designated as a fugitive economic offender, it would open the door for authorities to liquidate his seized assets and repatriate the funds to compensate victims of the massive banking fraud.
Background of the Case
Mehul Choksi, owner of the Gitanjali Group, is a key accused in the ₹13,000 crore PNB scam, which rocked the Indian banking sector in 2018. He fled the country before the fraud came to light and later acquired citizenship in Antigua and Barbuda. While his nephew Nirav Modi is currently lodged in a UK jail fighting extradition, Choksi has continued to evade Indian authorities by exploiting legal loopholes across jurisdictions.
The PNB scam involved fraudulent Letters of Undertaking (LoUs) issued by bank officials that enabled Choksi and Nirav Modi to secure overseas credit without proper collateral. The scam remains one of India’s biggest banking frauds.
What Lies Ahead
The court will now deliberate on the ED’s submissions and Choksi’s application. If the agency’s request is accepted, the FEO process will move forward, paving the way for seizure of Choksi’s global assets.
For Indian authorities, Choksi’s persistent opposition in Belgium underscores the challenges of bringing back high-profile fugitives, even as the government seeks stronger international cooperation against financial crimes.
