Fugitive diamond businessman Mehul Choksi has withdrawn his damages claim before the London High Court over allegations that he was unlawfully abducted from Antigua in 2021.
Following the withdrawal, the court ordered Choksi to contribute £677,000 towards the legal costs incurred by parties involved in the proceedings. At an exchange rate of roughly ₹127 per pound, the amount is approximately ₹8.59 crore.
The legal development is separate from Choksi's ongoing extradition proceedings in Belgium.
What Was Choksi's Allegation?
Choksi had brought proceedings alleging that Indian authorities and other individuals were involved in an operation to unlawfully abduct him from Antigua and take him to India through Dominica.
The alleged incident dates to May 23, 2021, when Choksi disappeared from Antigua and was subsequently located in Dominica.
His case alleged involvement by several individuals, including Hungarian national Barbara Jarabik, and accused those involved of unlawful detention, abduction and other wrongdoing.
The Indian government rejected the allegations and disputed the jurisdiction of the UK court. It also relied on state-immunity arguments during the proceedings.
Why Was the Case Dropped?
Choksi has now discontinued the multimillion-pound damages claim against the Indian government and other parties.
The information currently available does not establish a specific reason for his decision to withdraw the proceedings.
With the claim discontinued, the London High Court litigation concerning the alleged 2021 abduction has effectively come to an end, subject to the court's orders concerning costs.
Court Orders £677,000 in Legal Costs
Justice Mansfield ordered Choksi to pay £677,000 towards the legal expenses of parties involved in the proceedings.
The order includes £425,000 in security costs associated with Gurjit Brar and Leslie Farrow-Guy.
A further £252,000 was awarded towards the legal fees of Gurmit Singh and Gurjit Singh Bhandal.
The judge also raised concerns about the evidentiary basis of parts of Choksi's case, noting that much of the evidence presented was hearsay and lacked independent witness support.
Choksi Remains in Belgium
Choksi is currently being held in Antwerp, Belgium, where he is challenging an extradition order seeking his transfer to India.
Indian authorities want him in connection with the Punjab National Bank fraud case involving fugitive businessman Nirav Modi and companies associated with him.
The London proceedings therefore represent only one part of the wider legal issues surrounding Choksi, who continues to contest extradition separately in Belgium.
Separate Development in the Nirav Modi-Linked Investigation
The latest development comes alongside another action involving the wider Nirav Modi-linked financial fraud investigation.
The Central Bureau of Investigation (CBI) has secured the deportation of Sandeep Mistry from the UAE to India.
Mistry had reportedly been the subject of an Interpol Red Notice and was allegedly involved in the day-to-day functioning of entities connected with the investigation.
Investigators have alleged that he was involved in activities including the destruction of digital evidence, manipulation of import-export documentation and the use of offshore entities in connection with transactions under investigation.
Sandeep Mistry Brought Back From UAE
The CBI worked with Interpol and other agencies to pursue Mistry and subsequently secure his deportation from the UAE.
According to the reported investigation, the process took around two months after the relevant international measures were initiated.
His return is expected to provide investigators an opportunity to examine alleged overseas operations and entities connected with the broader financial fraud case.
Cases involving cross-border financial transactions often require investigators to reconstruct complex money trails and examine entities operating across different jurisdictions. Such work falls within the wider scope of Financial Investigation.
Choksi's withdrawal from the London damages case does not resolve his separate extradition proceedings in Belgium. Meanwhile, Indian investigative agencies continue pursuing legal action involving individuals and entities connected with major financial fraud cases across international jurisdictions.