Mehul Choksi and his nephew Nirav Modi are the main accused in the multi-crore scam, which is being investigated by both the Central Bureau of Investigation (CBI) and the ED. File | Photo credit: Special arrangement
In a setback for fugitive diamond merchant Mehul Choksi, the main accused in the Punjab National Bank (PNB) fraud case, a special court in Mumbai on Friday (Nov 28, 2025) rejected his plea to stay the proceedings against him being declared a Fugitive Economic Offender (FEO).
After his arrest in Belgium in April this year, Mr. Choksi applied to a special court hearing cases under the Prevention of Money Laundering Act (PMLA) to reject the Executive Directorate’s (ED) request to declare him an FEO.
Mr. Choksi argued that since he is currently in custody for the cases pending in India for which the Indian authorities in Belgium have filed an extradition request, the plea filed by the ED to declare him as an FEO deserves to be rejected.
The ED opposed his plea that the 66-year-old did not want to return to India as he was fighting extradition proceedings against him in Belgium.
The investigating agency argued that the FEO proceedings will end only when the absconding accused appears. He stated that the suit has no merit and deserves to be dismissed.
Also Read: Extradition saga: No reprieve for Mehul Choksi from Belgian court
Under the FEO Act, a person can be declared an FEO if a warrant has been issued against him for an offense involving an amount of ₹100 million or more and he has left the country and refuses to return. Once the accused is declared a FEO, the investigating agency can seize his assets.
On October 17, a Belgian court granted India’s request to extradite the diamond merchant. However, he challenged the order in the country’s highest court.
Mr. Choksi and his nephew Nirav Modi are the main accused in the multi-crore scam, which is being investigated by both the Central Bureau of Investigation (CBI) and the ED.
They are accused of allegedly siphoning off more than ₹13,000 crore of public money from PNB. While Mr. Choksi faces extradition proceedings, Mr. Modi is being held in a London jail.
Published – 28 Nov 2025 23:57 IST
