Mehul Choksi detained in Belgium on India's extradition request

Absconding diamond jeweller has been detained in Belgium following an extradition request by Indian probe agencies for his alleged involvement in the Rs 13,000 crore Punjab National Bank (PNB) loan 'fraud' case, official sources said Monday, 14 April.

The action against the diamantaire was taken on Saturday.

Sources said that after the Interpol Red Notice against him for arrest was "deleted", Indian agencies, the Enforcement Directorate (ED) and the CBI, moved for his extradition from Belgium.

Choksi, his nephew and fugitive diamond trader Nirav Modi and their family members and employees, bank officials and others were booked by the two agencies in 2018 for perpetrating the alleged at the Brady House branch of PNB in Mumbai.

ED alleged that Choksi, his firm Gitanjali Gems and others "committed the offence of cheating against Punjab National Bank in connivance with certain bank officials by fraudulently getting the LOUs (letters of undertaking) issued and got the FLCs (foreign letter of credit) enhanced without following prescribed procedure and caused a wrongful loss to the bank."

The ED has filed three charge sheets against Choksi till now. The CBI too has filed similar charge sheets against him.

Mehul Choksi, the fugitive founder of Gitanjali Gems, is a key accused in the Rs 13,500-crore Punjab National Bank (PNB) loan fraud case. He is also the uncle of Nirav Modi, who is similarly implicated in the same scam.

Choksi was recently granted residency in Belgium on 15 November 2023, after previously residing in Antigua and Barbuda. His wife, Preeti Choksi, holds Belgian citizenship.

According to a report by the Associated Times, Choksi acquired an 'F Residency Card' in Belgium by allegedly submitting false and misleading documents, including forged declarations and incorrect information. He reportedly concealed his Indian and Antiguan citizenships and misrepresented his nationality during the application process—moves believed to be part of a strategy to avoid extradition to India.

The same report indicates that Choksi was planning to travel to Switzerland, purportedly for treatment at a prominent cancer hospital. His lawyer had earlier informed a Mumbai court that he was in Belgium for suspected cancer treatment.

Choksi and Nirav Modi are accused of orchestrating a massive banking scam by fraudulently securing Letters of Undertaking from PNB, triggering one of India’s biggest financial scandals. While Nirav Modi remains in custody in London and is fighting extradition to India, Choksi made headlines in 2021 when he briefly went missing from Antigua before being located and returned there.

The Enforcement Directorate has been pushing to have Mehul Choksi declared a fugitive economic offender (FEO), a move that would enable the confiscation of his assets. While Nirav Modi was declared an FEO in 2019, the ED’s plea against Choksi has been pending since 2018. A special court under the Prevention of Money Laundering Act (PMLA) in Mumbai is currently hearing the matter.