PMLA Court Rejects Mehul Choksi's Pleas to Drop FEO Proceedings
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A special Prevention of Money Laundering Act (PMLA) court has dismissed two applications filed by fugitive diamantaire Mehul Choksi, rejecting his attempts to drop Fugitive Economic Offenders (FEO) proceedings against him.The court's decision comes after Choksi argued that the liquidation of his company, Gitanjali Gems Ltd, and the appointment of an official liquidator should have taken precedence over the Enforcement Directorate's (ED) FEO proceedings. However, the court noted that a similar application had been rejected in 2019 and was not challenged in a higher court.The court also rejected Choksi's contention that the Serious Fraud Investigation Office (SFIO) was entrusted with investigating companies linked to him in 2018, thereby precluding the ED from pursuing FEO proceedings. The court cited a Delhi High Court ruling that parallel probes by other agencies are not barred under the Companies Act, 2013, when it comes to proceedings under special statutes like the FEO Act.Special Judge AV Gujarathi upheld that the ED's application for declaring Choksi an FEO was not hindered by the pendency of the SFIO probe or the liquidation of Gitanjali Gems Ltd. The decision is a significant blow to Choksi's attempts to evade FEO proceedings, which could lead to the confiscation of his properties if he is declared a fugitive economic offender.
