Is Mehul Choksi a fugitive under Indian law? What it means for extradition

Fugitive diamond merchant Mehul Choksi is under investigation by the Enforcement Directorate and Central Bureau of Investigation in connection with the ₹13,500 cr Punjab National Bank loan fraud

Following confirmation of diamond businessman Mehul Choksi’s arrest by Belgian authorities earlier this week, his lawyer Vijay Aggarwal stated that his client is “not a fugitive, but a cancer patient”. He told reporters that Choksi plans to challenge both the arrest and the extradition request, citing “humanitarian and political grounds”. 

“This is a political case. My client is not a flight risk and is gravely ill. He’s undergoing treatment for cancer and has consistently offered to cooperate through video conference. His human rights will be severely compromised if he is extradited to India. We are filing an appeal immediately,” Aggarwal told journalists. 

 

Choksi (65) is under investigation by Indian agencies — the Enforcement Directorate (ED) and Central Bureau of Investigation (CBI) — in connection with the ₹13,500-crore Punjab National Bank (PNB) loan fraud. He has remained outside India since 2018. 

Aggarwal said that his client cannot be termed a ‘fugitive’ under Indian law, as he has been in touch with authorities and has offered to cooperate virtually. “We have filed multiple applications offering that he will join the investigation virtually. Despite his willingness, he couldn’t travel back due to serious health constraints,” he said.

 

Court petition still underway

Choksi has not yet been legally designated a Fugitive Economic Offender (FEO). The ED had filed a petition seeking this declaration in July 2018 under the Fugitive Economic Offenders Act. The plea, however, has remained pending in a Mumbai court for nearly seven years, according to a PTI report. 

Authorities arrested Choksi in Belgium following an extradition request from Indian investigative bodies. The ED had also sought to confiscate his assets under provisions of the FEO Act. 

The delay in the case has been attributed to numerous petitions filed by Choksi in both the PMLA court and the Bombay High Court, challenging procedural aspects of the ED’s plea.

 

Legal provisions under the FEO Act

The Fugitive Economic Offenders Act allows authorities to label an individual as an FEO if they face a warrant for an offence involving ₹100 crore or more and have fled the country while refusing to return. Once declared an FEO, their properties can be seized by enforcement agencies. 

Choksi had contested the ED's application in the Bombay High Court, arguing that the agency had not adhered to due process. However, in a ruling in September 2023, the High Court upheld the ED’s procedure, dismissing Choksi’s plea and lifting a stay on the lower court’s proceedings. Despite that, the FEO hearing has not moved forward. Choksi’s bid to halt proceedings through another application — to recall the notice on the ED’s plea — was turned down in December 2023.

 

Centre refers to him as a ‘fugitive’

According to officials, Choksi left India in early January 2018 under suspicious circumstances. He has since been described as a ‘fugitive’ in both official documents and legal communications. 

His lawyer maintains that the ED has shifted its grounds for seeking the FEO tag and adds that the cancellation of Choksi’s passport made it impossible for him to return for questioning.

 

Nirav Modi already declared ‘fugitive’

Choksi, founder of the Gitanjali Group, is one of the key accused in the PNB bank fraud case along with his nephew Nirav Modi. In 2018, both were named in cases filed by the ED and CBI, along with several others including bank officials and employees.

Nirav Modi has already been designated a Fugitive Economic Offender and is currently held in a UK prison since 2019.

 

Will this affect extradition?

Choksi was arrested in Belgium following a request from the CBI and ED as part of their investigation into the PNB scam. Whether or not he is formally declared a fugitive, that status does not impact the extradition process. However, the FEO designation would allow authorities to seize his assets in India and overseas, strengthening further legal action. 

Choksi, who had been living in Antigua since fleeing India, reportedly travelled to Belgium last year to seek medical treatment.

 

[With PTI inputs]