Mehul Choksi, the main suspect in the Punjab National Bank loan fraud case, is currently receiving medical treatment in Belgium for suspected cancer. His lawyer plans to file a health condition document in Mumbai’s special court, which is considering the Enforcement Directorate’s request to label Choksi a fugitive economic offender due to his previous fraudulent activities.
Mumbai: Fugitive diamond trader Mehul Choksi, the prime accused in the Punjab National Bank (PNB) loan fraud case, is currently in Belgium for medical treatment of suspected cancer, a special court in Mumbai was informed on Tuesday.
Advocate Vijay Agarwal, representing Choksi, told the court that he intends to file an application to formally place on record his client’s health condition. “Choksi is at present in Belgium for medical treatment,” Agarwal said, adding that he is suspected to be suffering from cancer.
The special Prevention of Money Laundering Act (PMLA) court in Mumbai is hearing an application by the Enforcement Directorate (ED) seeking to declare Choksi a fugitive economic offender (FEO). The FEO status allows the Indian government to confiscate the offender’s properties.
Choksi, along with his nephew Nirav Modi, their family members, bank officials, and others, was booked in 2018 by the ED and the Central Bureau of Investigation (CBI) for allegedly orchestrating a massive loan fraud at PNB’s Brady House branch in Mumbai.
Since 2018, Choksi has been residing in Antigua, while Nirav Modi was declared an FEO in 2019. However, the ED’s plea against Choksi remains pending.
As per ED’s investigation, Choksi and his firm, Gitanjali Gems, in collusion with bank officials, fraudulently obtained Letters of Undertaking (LoUs) and Foreign Letters of Credit (FLCs) without following proper banking procedures.
So far, the ED has filed three charge sheets against Choksi, and in 2019, the agency told the Bombay High Court that Choksi was a “fugitive and absconder.”
With his health issues now being cited, it remains to be seen how the legal proceedings will unfold in the long-running PNB loan fraud case.
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