In a setback to absconding diamantaire Mehul Choksi, a prime accused in the Punjab National Bank (PNB) fraud case, a special court here has rejected his application seeking to drop the proceedings declaring him a Fugitive Economic Offender (FEO), reported news agency PTI.

Following his arrest in Belgium in April this year, Choksi had moved the plea before the court hearing cases under the Prevention of Money Laundering Act (PMLA) to dismiss the Enforcement Directorate (ED)`s application to declare him an FEO.