‘In constructive custody’: Mehul Choksi opposes ED’s fugitive tag; cites Belgium arrest
Diamond merchant Mehul Choksi, a key accused in the Rs 13,500 crore Punjab National Bank (PNB) scam, on Tuesday challenged the Enforcement Directorate’s attempt to label him a fugitive economic offender (FEO), arguing that he is already in “constructive custody” of Indian authorities.Appearing before the Special PMLA Court in Mumbai, Choksi’s lawyer Vijay Aggarwal contended that the legal grounds to declare his client a fugitive are “fundamentally flawed”. Choksi, who was recently arrested in Belgium and is currently lodged in Antwerp prison, was apprehended under a non-bailable warrant issued by an Indian court and following an official extradition request by India.“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 told ANI. He pointed out that under the Fugitive Economic Offenders Act, a person must have either left India to avoid prosecution or refused to return—criteria that, he argued, do not apply to Choksi.Aggarwal said Choksi had travelled to New York for medical treatment in 2018 with police clearance from Mumbai and, at that time, no charges had been filed against him. He added that a Dominican court order in 2021, issued after an alleged abduction attempt, had prohibited Choksi from leaving Antigua. The order, passed in the presence of CBI officials, amounted to a restriction with Indian authorities’ knowledge.“Now that my client has been arrested in Belgium, at India’s request, and is being held in connection with Indian charges, he is effectively under Indian jurisdiction,” Aggarwal argued, citing judicial precedents that validate such custody under Indian law. The FEO plea, he said, has remained unresolved for years, and its continuation is unwarranted.Meanwhile, Choksi had earlier filed a petition before the Belgian Court of Appeal, accusing local authorities of procedural violations during his arrest and alleging breaches of his fundamental rights. The court recently denied him bail, and the next hearing has not yet been scheduled.This development comes as Choksi pursues a civil case in the UK against the Indian government and five others, claiming they orchestrated his 2021 abduction from Antigua in an alleged “honeytrap” plot. Represented by Edward Fitzgerald KC, Choksi alleges that operatives acting for India’s external intelligence agency R&AW kidnapped and smuggled him to Dominica to force his return to India. India, which denies involvement, has invoked state immunity and contested UK jurisdiction.Simultaneously, the Securities and Exchange Board of India (Sebi) has initiated recovery proceedings against Choksi over unpaid dues from insider trading violations involving Gitanjali Gems. On June 4, Sebi froze his bank, demat, and mutual fund accounts after he failed to pay Rs 2.1 crore. The amount stems from a 2022 order finding Choksi guilty of leaking unpublished price-sensitive information. Sebi had previously barred him from trading and declared him in breach of insider trading rules.
