Mumbai: Mehul Choksi Faces Setback As Court Rejects Plea Against ED's Fugitive Offender Case
A special court has rejected a plea by Mehul Choksi’s lawyer to dismiss the Enforcement Directorate’s (ED) application to declare him a fugitive economic offender (FEO). The ruling allows the ED to proceed with its case under the Fugitive Economic Offenders (FEO) Act. The decision comes amid ongoing investigations into companies linked to Choksi by the Serious Fraud Investigation Office (SFIO).
Choksi’s legal team had argued that the ED’s application should be dismissed because the Serious Fraud Investigation Office (SFIO) was already probing the matter. They claimed the Companies Act barred parallel investigations, making the ED’s move invalid.
The court, however, clarified that the Companies Act does not prevent investigations under other laws. It noted that the ED’s application under the FEO Act remained legally sound, regardless of the SFIO’s ongoing work. During proceedings, ED prosecutor Kavita Patil countered that the Companies Act’s restrictions only applied to offences under that specific law. She argued that the ED’s case fell outside this scope, allowing it to continue. The court also dismissed a request to include an official liquidator to represent Gitanjali Gems Ltd, which has entered liquidation. Additionally, it highlighted that the Central government had directed the SFIO to investigate 67 companies and three limited liability partnerships (LLPs) connected to Choksi in February 2018. Meanwhile, the Ministry of Corporate Affairs confirmed it is awaiting the SFIO’s final report on these entities. The ministry stated it would take further action based on the findings once submitted.
The court’s decision paves the way for the ED to continue its pursuit of declaring Choksi a fugitive economic offender. The ruling also reinforces that investigations under different laws can proceed independently. The Ministry of Corporate Affairs will now await the SFIO’s conclusions before determining its next steps.
Read also:
- American teenagers taking up farming roles previously filled by immigrants, a concept revisited from 1965's labor market shift.
- Weekly affairs in the German Federal Parliament (Bundestag)
- Landslide claims seven lives, injures six individuals while they work to restore a water channel in the northern region of Pakistan
- Escalating conflict in Sudan has prompted the United Nations to announce a critical gender crisis, highlighting the disproportionate impact of the ongoing violence on women and girls.
