(The Gist of PIB) Mehul Choksi ‘fugitive and absconder’: ED tells Bombay HC [JUNE-2019]

Mehul Choksi ‘fugitive and absconder’: ED tells Bombay HC

Enforcement Directorate told Bombay High Court that Diamond trader Mehul Choksi, accused in the multi-crore Punjab National Bank scam, is a fugitive economic offender.

The FEOA became a law on July 31, 2018.
In January 2019, Absconding liquor baron Vijay Mallya became the first person to be declared a fugitive economic offender by the special court hearing cases under the FEOA.
Now, government can now confiscate all his properties.

To deter economic offenders from avoiding the process of Indian law by remaining outside the jurisdiction of Indian courts.
To ensure that fugitive economic offenders return to India to face the action in accordance with law.

FEO is defined as an individual who has committed offences involving an amount of 100 crore rupees or more and has ran away from India to avoid criminal prosecution.
A special court will be established under the Prevention of Money-laundering Act, 2002 to declare a person as a Fugitive Economic Offender.
Special courts can direct the Central government to seize assets of fugitive economicoffender including those that are proceeds of the crime.
Appeals against the orders of the special court will lie before the High Court.