‘How can I return if passport is suspended for security reasons’: Mehul Choksi in appeal before Mumbai court

Diamantaire Mehul Choksi, a key accused in the multi-crore PNB scam, has told a special court in Mumbai that he hasn’t been able to return to India “due to reasons beyond his control” and hence cannot be declared a “fugitive economic offender” (FEO). 

Choksi had filed an application through his lawyer Vijay Aggarwal seeking certain relevant documents to be called by the court. The documents sought are from the passport office of Mumbai, which according to Choksi “will throw light on the reason why the passport… has been suspended for reason ‘Security Threat to India’. That the same will show that Choksi could not return to India for reason beyond his control and therefore, Section 2(f) (ii) being abroad, refuses to return to India to face criminal prosecution; is not satisfied.” 

Section 2(f) (ii) of the Fugitive Offenders Act requires that only such a person be declared an offender under such act if any individual against whom a warrant for arrest in relation to a scheduled offence has been issued by any court in India, who being abroad, refuses to return to India to face criminal prosecution. 

Choksi claimed that he didn’t leave the country to avoid criminal prosecution nor is he refusing to return. The fugitive diamantaire claimed that his passport has been suspended by Indian authorities, and in response to summons requiring him to appear on February 22, 2018, it has been categorically stated that he is unable to return to India as his passport has been suspended. 

Along with Choksi’s appeal, Aggarwal annexed the mail sent by the passport office in 2018, which notified him that his passport was being suspended for being a ‘security threat to India’.  

“That in such circumstances, the stand of the Directorate of Enforcement that the applicant is not returning to India is vitiated as the applicant cannot be expected to return to India when his passport has been suspended. Therefore, for adjudication of the present matter, it is necessary that the reason and documents be brought on record which shows that suspension of passport of Choksi,” said Aggarwal. 

Choksi has also sought details from the Directorate of Enforcement (ED) to bring on record if there is any evidence collected by the agency, which shows the businessman was aware of the alleged bank fraud being unearthed and therefore, fled the country to avoid arrest.  

ED had claimed that Choksi had anticipated that the fraud was going to be unearthed and he would be arrested by the investigating agencies. Therefore, he had tried to dispose of his properties before fleeing the country on January 2, 2018.  

Agarwal said that Choksi had not left India as he anticipated an investigation but had left for medical treatment. 

ED had initiated a fugitive economic offender (FEO) proceeding against Choksi, which is dragging on in the court. Earlier, ED had managed to get Choksi’s relative Nirav Modi, another accused in the Punjab National Bank scam, declared a FEO. 

On July 10, 2018, the ED approached the special court to declare Choksi, who is currently residing in a Caribbean country, to declare him a fugitive under the FEO Act, which would enable it to confiscate his properties. Choksi, who fled India in 2018, is accused in the Rs 12,500 crore Punjab National Bank scam.