New Delhi, April 14 (HS): Mehul Choksi, a fugitive diamond trader linked to the Punjab National Bank (PNB) loan fraud, has been arrested by Belgian authorities at the request of Indian agencies, including the CBI and ED. Following non-bailable warrants issued by Mumbai courts, Choksi was detained on April 12 while receiving hospital treatment in Belgium. He had been a fugitive since 2018 and traveled to Europe citing health issues shortly after Indian authorities intensified extradition efforts.
Currently held at a detention center, sources indicate his health is deteriorating due to blood cancer treatment. Choksi had plans to move to Switzerland for further medical care when arrested.
Indian agencies reactivated extradition requests after the removal of an Interpol Red Corner Notice against him. Despite claims from Choksi’s lawyers about his unfitness for travel, Indian officials argued that if he could fly to Belgium for treatment, he could return to India. Indian authorities aim to extradite him for trial, although the process may be lengthy.
Choksi is expected to seek bail on medical grounds and may raise past allegations of an attempted kidnapping by Indian operatives as part of his legal defense.
Indian agencies remain optimistic that, even if Mehul Choksi is granted bail, he will not be permitted to return to Antigua. They are also exploring deportation as a means to facilitate his return to India. Choksi faces accusations of defrauding Punjab National Bank of over Rs 6,095 crore through a significant banking scam involving the fraudulent issuance of Letters of Undertaking (LOUs) and manipulation of Foreign Letters of Credit (FLCs). While the overall estimated fraud exceeds Rs 13,000 crore, the case against Choksi focuses on the Rs 6,095 crore directly linked to his activities.
The investigations, led by the CBI and ED, are grounded in testimony and documentation from key individuals, including Vipul Chitalia from Choksi’s Gitanjali Group and the late Deepak Kulkarni. Their evidence revealed the intricate planning and execution of the fraud aimed at deceiving the bank, as well as subsequent money laundering activities. Choksi’s company, Gitanjali Gems, is implicated in various charge sheets by the ED, while the CBI has filed cases against him,
Nirav Modi, and others for cheating and corruption. Concurrently, Choksi is being pursued for designation as a Fugitive Economic Offender. Meanwhile, his co-accused, Nirav Modi, remains detained in London and contests extradition efforts to India.
Hindusthan Samachar / Jun Sarkar
