Indian Agencies to Approach UK Court on Choksi’s Source of Funds

Legal representatives of the Indian government are preparing to formally write to the High Court of Justice in London, placing on record their concerns over the source of funds by Mehul Choksi to pay the security of costs. The move follows the court’s direction requiring Choksi to deposit £677,000 by 4:00 pm on 3 April 2026 in a civil lawsuit linked to his claims in the UK.

Handing down the deadline for the payment, Justice Mansfield ruled on Friday, 13 February 2026, that the money must be paid into the Court Funds Office.

Choksi has maintained before the court that his assets have been seized by Indian authorities in connection with the $2 billion Punjab National Bank fraud, and that he will raise the funds by either taking loan or selling property owned by one of his relatives.

However, sources close to the Indian government said the proposed transaction is already under close scrutiny. The Enforcement Directorate and the Central Bureau of Investigation are reportedly monitoring the movement of funds, amid suspicions that the property in question may have been purchased by Choksi himself and registered in another person’s name.

Sources further indicated that agencies are also assessing whether the funds could be routed through intermediaries, including the possibility that Choksi’s legal team may be facilitating transactions that could amount to money laundering.

They said investigators will also examine whether the property proposed for sale is linked to an offshore company. In such a scenario, agencies will scrutinise the ownership structure of the entity, identify its ultimate beneficial owners, and trace how and when the company acquired the asset, as part of a broader effort to determine whether Choksi has indirect control over the property and the funds being raised.

In an earlier ruling dated 6 February, Justice Mansfield raised serious questions about Choksi’s financial disclosures. “There is no detailed evidence as to Mr. Choksi’s financial position, nor as to his ability to raise money to cover the security,” the judge noted, adding that there was also “no explanation as to how he is meeting his own legal costs”.

The court’s observations come against the backdrop of Choksi’s extensive litigation across multiple jurisdictions, including the UK, India, Belgium and the Caribbean (Antigua and Barbuda and Dominica). Despite claiming that his assets are frozen, Choksi is understood to have spent millions of pounds on legal fees in recent years, with authorities continuing to question the source of those funds. Reportedly, experts suspect that his legal teams are involved in money laundering.

Notably, the recent ruling by the High Court in London followed applications by the defendants Gurmit Singh, Gurjit Bhandal, Leslie Farrow-Guy, and Gurdip Bath who sought an order requiring Mehul Choksi to provide security for costs. Such orders are intended to protect defendants from the risk of being unable to recover legal expenses if they succeed in the case and the claimant fails to pay.