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Synopsis

The Bombay High Court on Wednesday rejected the four petitions filed by Indian Businessman Mehul Choksi challenging the applications filed by the Enforcement Directorate seeking him to declare him as a Fugitive Economic Offender. 

A single-judge bench of Justice Sarang Kotval passed the order rejecting Choksi's four petitions. 

"The preamble of the Act is significant. It states that this is an Act to provide for measures to deter fugitive economic offenders from evading the process of law in India by staying outside the jurisdiction of Indian courts, to preserve the sanctity of the rule of law in India and for matters connected therewith or incidental thereto. Therefore, section 4 of the FEO Act and Rule 3 of the FEO Rules are made to further the objective of this Act and they cannot be bypassed by taking recourse to the other provisions of Cr.P.C. to contend that the affidavit was not proper," the bench observed. 

Indian Businessman Mehul Choksi is an accused in the Punjab National Bank fraud case. The Enforcement Directorate had approached the Special Court seeking to declare Choksi as a Fugitive Economic Offender. 

The Bombay High Court had stayed the proceedings before the Special Court in January 2020. The agency had moved the high court seeking a review as Choksi had already fled India. 

Advocate Vijay Aggarwal appearing for Choksi contended before the high court that there were procedural lapses in the application filed by the agency. He further added that Choksi had moved out of India before the registration of FIR. 

Aggarwal also argued that Choksi wanted to return to India but was unable to return due to his medical condition. 

The bench was appraised that Choksi was granted bail by the Eastern Caribbean Supreme Court to travel to Antigua and Barbuda for his medical treatment. 

Advocate Hiten Venegaonkar appearing for the agency submitted that Choksi was an accused in the PNB fraud case and the prosecution was pending due to stay by the high court. 

Additionally, he argued that the Special Judge was not proceeding with the case due to the stay order of the high court. Therefore, the same was required to be reviewed.

The bench agreed with the contentions of the agency and said,

"Looking at all these aspects of this matter, firstly I do not find any infirmity in the verification and even otherwise I find that all the requirements under Section 4 of the FEO Act and under Rule 3 of the FEO Rules are properly complied with in this case. Therefore, I do not see any reason to interfere with the impugned order and hence the application is rejected. The interim relief stands vacated. In view of disposal of the main Application, nothing survives in the pending Interim Applications and same are also disposed of," the order reads.

Case title: Mehul Choksi vs State of Maharashtra & Anr.