The Crossbill Team
Absconding diamond jeweller Mehul Choksi, a key accused in the Rs 13,000 crore Punjab National Bank (PNB) loan fraud case, was detained in Belgium on April 12, news agency PTI reported in the early hours of Monday (April 14).
Choksi, who is wanted by Indian agencies for his alleged role in one of India’s biggest banking scams, was held following an extradition request by the Enforcement Directorate (ED) and the Central Bureau of Investigation (CBI). He is the uncle of Nirav Modi, another high-profile accused in the same case, currently fighting extradition in the UK.
The development marks a significant moment in the years-long efforts by Indian authorities to bring Choksi to justice. He had earlier taken refuge in Antigua and Barbuda, where he acquired citizenship. Reports suggest Choksi later moved to Belgium, where his wife holds citizenship.
In 2023, Choksi secured a legal reprieve when the Antigua and Barbuda High Court ruled he could not be removed from the country. This came after he filed a civil suit claiming that he had been abducted from Antigua and forcibly taken to Dominica in May 2021, allegedly by Indian intelligence operatives.
Citing this incident, Interpol had withdrawn its Red Notice against him, complicating India’s attempts to extradite him at the time.
According to the ED, Choksi, his firm Gitanjali Gems, and others cheated Punjab National Bank by fraudulently obtaining Letters of Undertaking (LoUs) and Foreign Letters of Credit (FLCs), allegedly in connivance with certain bank officials. These actions, the agency said, caused wrongful losses to the bank amounting to thousands of crores.
Gitanjali Gems was also named last year as the top wilful defaulter in the Reserve Bank of India’s list, having failed to repay its loans despite being in a position to do so.
A special PMLA court in Mumbai had earlier observed that fugitives like Choksi, Nirav Modi, and Vijay Mallya managed to escape because of lapses by investigative agencies, particularly their failure to arrest them in time.
Choksi’s detention in Belgium could now revive India’s push to bring him back to face trial. However, it remains to be seen how the extradition process will unfold in the wake of past legal and diplomatic setbacks.
Choksi, who is wanted by Indian agencies for his alleged role in one of India’s biggest banking scams, was held following an extradition request by the Enforcement Directorate (ED) and the Central Bureau of Investigation (CBI). He is the uncle of Nirav Modi, another high-profile accused in the same case, currently fighting extradition in the UK.
The development marks a significant moment in the years-long efforts by Indian authorities to bring Choksi to justice. He had earlier taken refuge in Antigua and Barbuda, where he acquired citizenship. Reports suggest Choksi later moved to Belgium, where his wife holds citizenship.
In 2023, Choksi secured a legal reprieve when the Antigua and Barbuda High Court ruled he could not be removed from the country. This came after he filed a civil suit claiming that he had been abducted from Antigua and forcibly taken to Dominica in May 2021, allegedly by Indian intelligence operatives.
Citing this incident, Interpol had withdrawn its Red Notice against him, complicating India’s attempts to extradite him at the time.
According to the ED, Choksi, his firm Gitanjali Gems, and others cheated Punjab National Bank by fraudulently obtaining Letters of Undertaking (LoUs) and Foreign Letters of Credit (FLCs), allegedly in connivance with certain bank officials. These actions, the agency said, caused wrongful losses to the bank amounting to thousands of crores.
Gitanjali Gems was also named last year as the top wilful defaulter in the Reserve Bank of India’s list, having failed to repay its loans despite being in a position to do so.
A special PMLA court in Mumbai had earlier observed that fugitives like Choksi, Nirav Modi, and Vijay Mallya managed to escape because of lapses by investigative agencies, particularly their failure to arrest them in time.
Choksi’s detention in Belgium could now revive India’s push to bring him back to face trial. However, it remains to be seen how the extradition process will unfold in the wake of past legal and diplomatic setbacks.
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