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Fugitive diamond trader Mehul Choksi, the primary accused in the Punjab National Bank (PNB) loan fraud case, is currently in Belgium undergoing medical treatment for suspected cancer, a special court was informed on Tuesday.
Advocate Vijay Agarwal, representing Choksi, informed the court of his intent to file an application to formally document Choksi’s health condition, stating, “He is presently in Belgium for medical treatment.”
A special Prevention of Money Laundering Act (PMLA) court in Mumbai is currently adjudicating the Enforcement Directorate’s (ED) plea seeking to designate Choksi as a fugitive economic offender (FEO). Such a designation would empower the government to proceed with the confiscation of his assets.
Choksi, along with his nephew Nirav Modi, family members, employees, bank officials, and other associates, was charged by both the ED and the Central Bureau of Investigation (CBI) in 2018 for orchestrating the PNB loan fraud at the bank’s Brady House branch in Mumbai.
Choksi has been residing in Antigua since 2018 after fleeing India. Meanwhile, Nirav Modi was declared an FEO in 2019, but the ED’s petition to classify Choksi under the same designation has remained pending since 2018.
According to allegations, Choksi, his firm Gitanjali Gems, and other accomplices engaged in fraudulent activities by securing Letters of Undertaking (LoUs) and enhancing Foreign Letters of Credit (FLCs) in collusion with certain bank officials, thereby circumventing prescribed banking protocols.
The ED has filed three charge sheets against Choksi to date. In 2019, the agency informed the Bombay High Court that Choksi was a “fugitive and absconder.” The case continues to be a significant legal and financial matter within India’s efforts to combat economic offenses and financial fraud.
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