NEW DELHI: Fugitive diamond trader Mehul Choksi, who has been on the run for years, was recently arrested in Belgium. India had requested his extradition in connection with the Rs 13,000 crore Punjab National Bank (PNB) loan fraud case. Choksi was reportedly apprehended on Saturday at a hospital in Belgium.
Following the removal of an Interpol Red Notice against Choksi, Indian authorities, including the Enforcement Directorate (ED) and the Central Bureau of Investigation (CBI), have renewed efforts to secure his extradition. The Belgian government confirmed Choksi’s presence on its soil and stated that it is giving the matter significant attention after Choksi vanished from Antigua last year.
The Case Against Choksi
In 2018, Choksi, along with his nephew Nirav Modi, their associates, and several bank officials, were charged by the ED and CBI for allegedly masterminding a large-scale loan fraud at PNB’s Brady House branch in Mumbai. The ED claims that Choksi, through his company Gitanjali Gems and in collusion with certain bank officials, fraudulently obtained Letters of Undertaking (LoUs) and inflated Foreign Letters of Credit (FLCs), resulting in substantial financial losses for the bank.
To date, the ED has filed three charge sheets against Choksi, while the CBI has filed similar charges in the case.
Choksi’s Journey: From India to Dominica
Choksi is believed to owe over Rs 6,000 crore to 34 Indian banks, using fraudulent methods similar to those employed by his nephew, Nirav Modi. After the scam was exposed in January 2018, Choksi fled to Antigua and Barbuda, where he obtained citizenship. In February 2018, the CBI initiated efforts to locate Choksi, and by August that year, a formal extradition request was made to Antigua’s authorities.
Choksi opposed the extradition, claiming he was the victim of a political conspiracy and raising concerns about prison conditions in India as well as his personal health and safety. However, the Interpol’s Commission for Control of Files (CCF) dismissed these arguments and approved the Red Notice.
In May 2021, Choksi was detained in Dominica for illegal entry. A CBI team traveled there to bring him back to India, but their efforts were unsuccessful. In July 2021, the Dominica high court allowed Choksi to return to Antigua for medical treatment. Later, Choksi’s second plea led to the removal of the Interpol Red Notice.
Meanwhile, the Enforcement Directorate (ED) attached assets worth Rs 14.45 crore belonging to Choksi and his company, Gitanjali Group, including a flat in Mumbai, luxury watches, gold and platinum jewelry, precious stones, and a Mercedes-Benz car. The ED had previously attached assets worth over Rs 2,550 crore in connection with the case.
Choksi’s Belgian Residency
Choksi’s presence in Antwerp, Belgium, was confirmed last month, where he had been living with his wife, Preeti Choksi, after securing Belgian residency. According to reports, Choksi used “false declarations” and “forged documents” when applying for residency, failing to disclose his Indian and Antiguan citizenships. Reports also suggest that Choksi plans to relocate to Switzerland for cancer treatment.
Extradition to India: What’s Next?
India and Belgium share a longstanding extradition treaty, which allows the transfer of fugitives accused of serious crimes such as fraud, embezzlement, and forgery. However, the treaty includes several important conditions. Extradition is only possible if the alleged crime is considered an offense under the laws of both countries. Additionally, neither country is obligated to extradite its own nationals.
The treaty stipulates that extradition can only occur when there is sufficient evidence that the person accused of a crime would be apprehended and tried under the laws of the country where they are found. It also specifies that the crime must be punishable according to the laws of both countries.
With this in mind, the question remains: will Choksi be extradited to face trial in India? Only time will tell.
