Diamantaire Mehul Choksi has taken a significant legal step by filing a plea in a special court, seeking to dismiss the Enforcement Directorate’s (ED) request to declare him a “fugitive economic offender.” This case is part of the ongoing investigation into the Punjab National Bank (PNB) scam, which involves billions of dollars and has garnered widespread attention since it was uncovered in 2018.
Background on the Case
Choksi, along with his nephew Nirav Modi, is one of the key figures accused in the PNB fraud that allegedly caused losses amounting to ₹13,400 crore. The scam came to light in early 2018 and has led to numerous legal battles and investigations. The ED is pursuing Choksi under the Prevention of Money Laundering Act (PMLA), arguing that he should be classified as a fugitive economic offender due to his actions and absence from India.
Choksi’s Arguments
In his recent plea, submitted through his lawyer Rahul Agarwal, Choksi has pointed out several inconsistencies in the ED’s claims. He argues that the agency has frequently changed its position regarding the grounds for declaring him a fugitive. According to Choksi, the ED initially stated that he left India under suspicious circumstances in January 2018 and has avoided attending inquiries despite multiple summons. His passport was revoked on February 23, 2018, and a non-bailable warrant was issued against him.
However, Choksi claims that the ED later altered its narrative. He points out that the agency suggested he had attempted to dispose of his properties before leaving India, anticipating that the fraud would be uncovered. In an unexpected turn, the ED also claimed that Choksi applied for a visa to Antigua and Barbuda, indicating plans to acquire citizenship there.
Choksi argues that these shifts in the ED’s statements highlight their contradictory approach, undermining their credibility. He insists that the court should dismiss the ED’s application to label him a fugitive economic offender, suggesting that the agency is not being truthful in its claims.
The Legal Framework
Under the Fugitive Economic Offender Act, an individual can be declared a fugitive economic offender if they leave the country to avoid criminal prosecution or refuse to return to face charges. The ED is using this law to seek the confiscation of Choksi’s properties, arguing that he has deliberately evaded legal proceedings.
While Nirav Modi has already been declared a fugitive and has been in jail in London since 2019, Choksi’s case continues to unfold in the courts. The next hearing is scheduled for September 27, where further developments in this high-profile case are anticipated.
Conclusion
Mehul Choksi’s plea raises significant questions about the ED’s investigation methods and the handling of the PNB scam case. As this legal battle continues, it highlights the complexities involved in dealing with economic offenses and the efforts of authorities to hold individuals accountable. The upcoming court session will be crucial in determining the future course of this ongoing saga.
