Mumbai | September 9, 2026
A Mumbai special court on Tuesday reserved its decision on the Enforcement Directorate’s application to declare diamantaire Mehul Choksi a fugitive economic offender in connection with the Punjab National Bank loan fraud case. The court also expressed displeasure that the proceedings had remained pending for several years.
The Enforcement Directorate filed the application in July 2018 under provisions of the Fugitive Economic Offenders Act. It sought to have Choksi declared a fugitive economic offender and to allow the seizure of his properties. The application has remained pending amid legal challenges by Choksi concerning alleged procedural defects in the agency’s plea.
According to the report of the proceedings, Choksi had filed an application before the special court seeking cancellation of the action initiated to declare him a fugitive economic offender. He also approached the Bombay High Court with a petition alleging procedural shortcomings in the Enforcement Directorate’s application.
Choksi argued that he had been arrested in Belgium after investigative agencies issued an extradition request in connection with pending cases in India. He said he was contesting the extradition proceedings before a Belgian court and could not return to India while that legal process was continuing. On that basis, he sought the cancellation of the proceedings against him.
The Enforcement Directorate opposed the application. The agency argued that proceedings to declare an accused a fugitive economic offender could be withdrawn only after the accused appeared before the court. Since Choksi had not appeared before the special court, the agency said the proceedings could not be cancelled at this stage. It also sought the dismissal of Choksi’s application, stating that it had no merit.
The court declined a request from Choksi’s lawyers for additional time to make further submissions and reserved its decision on the Enforcement Directorate’s application. The court reportedly observed that the matter had been pending for seven to eight years and could not be kept unresolved indefinitely.
Choksi, 65, and his nephew, diamantaire Nirav Modi, are among the principal accused in the Punjab National Bank loan fraud case, which has been reported as involving approximately Rs 13,000 crore. The case concerns alleged fraudulent transactions involving the state-owned bank and jewellery businesses linked to the two accused.
The special court’s forthcoming decision will determine whether the Enforcement Directorate’s request to classify Choksi as a fugitive economic offender can proceed under the law, along with its request relating to the attachment of his assets.
