UK Court Reserves Security of Costs Decision in Mehul Choksi Case 

The London Court on Thursday heard arguments in a case filed by Indian fugitive Mehul Choksi with the court reserving its decision until the end of January on whether Choksi will be required to submit security for costs or not. The ruling will determine whether he must deposit funds to cover potential legal costs should his claims fail.

Choksi has, over the years, displayed a pattern of calculated moves, including his sudden disappearance, which he later described as an alleged kidnapping. When the US$1.8 billion Punjab National Bank (PNB) fraud came to light in India, he fled the country to evade judicial proceedings.

He subsequently relocated to Antigua and Barbuda, where he acquired citizenship under the country’s Citizenship by Investment (CBI) Programme, a move widely seen as an effort to avoid legal proceedings in India. Pursuing a similar objective, Choksi later secured residency in Belgium, a process that is now alleged to have involved false or misleading documentation while obtaining the F residency.

According to experts, each phase of his actions follows a familiar pattern marked by mastermind in relocation, legal repositioning, and strategic delay. They noted that these moves appear to form part of a calculated strategy aimed at evading justice in India and later in Antigua, while draining resources in the Caribbean in an effort to secure protection.

“Choksi always has a plan,” one observer said. “When people believe in him, he exits. When pressure builds, he relocates. There is always another layer.” 

The London Claim Raises More Questions Than Answers

In the current proceedings, Mehul Choksi has filed a £200,000 claim in London against India and five other defendants. However, the basis of his court remains unclear, particularly after a Belgian court ruled that there is no significant threat to his safety in India.

Experts are now seeking to understand the rationale behind his decision to keep the case active before the court, despite the absence of a clear legal risk. Even if Choksi were to pursue the case to its conclusion and succeed, the maximum recovery would remain £200,000. However, estimates suggest that his legal team’s fees could exceed £1.5 million if the matter proceeds to its proper conclusion.

Under standard arrangements, Choksi may be entitled to recover up to 70% of costs if he wins. Yet even under the most optimistic scenario, calculations suggest he would still face a net loss of approximately £450,000 after legal expenses recovery.

It is argued that the chances of success are widely viewed as slim and if Choksi loses, the financial exposure escalates significantly. If he wins, the cost of engaging top-tier legal counsel would still leave him financially disadvantaged. Due to these calculations, everyone including experts of such cases are raising the question of his game plan behind the case.

Concerns Regarding Choksi’s Finances

The most pressing issue in Choksi’s case still remains unresolved that is with Choksi’s assets reportedly frozen across jurisdictions, how he is financing an expensive legal battle in London.

Experts are questioning that has he formally declared the source of funds being used to pay his lawyers or are there any third parties involved and if so under what arrangements. These questions were not conclusively addressed during the latest hearing.

As one legal watcher put it, “There appears to be a larger strategy behind this. Only Choksi himself knows why he is pursuing this course of action.”

Notably, the London Court’s decision which is expected by the end of January will determine whether Choksi must post security for costs.