A Mumbai court has rejected absconding diamond businessman Mehul Choksi's application seeking to quash the proceedings to declare him a 'Fugitive Economic Offender' (FEO) in the Punjab National Bank (PNB) fraud case.

A similar plea filed by Choksi, citing his arrest in Belgium and extradition proceedings initiated by Indian authorities, had been rejected by the special court for Prevention of Money Laundering Act in November.