NEW DELHI: Fugitive diamond merchant Mehul Choksi , a key accused in the Rs 14,000-crore Punjab National Bank fraud case, was arrested on Saturday by Belgian authorities on India's extradition request.
Choksi’s arrest was based on two non-bailable warrants issued by a Mumbai court, dated May 23, 2018, and June 15, 2021, according to people familiar with the development.
Choksi is now preparing for a legal fight as his defence team prepares to seek bail and challenge efforts to extradite him to India.
His lawyers argue that there are valid grounds to oppose extradition, including his medical condition.
The 65-year-old fugitive diamond trader is wanted by the CBI and ED for his alleged role in defrauding PNB of nearly Rs 1,400 crore, along with his nephew Nirav Modi.
Choksi left India on January 2, 2018, initially travelling to the United States before settling in Antigua. He had acquired Antiguan citizenship in 2017, prior to fleeing the country.
In 2021, Choksi was arrested in Dominica under controversial circumstances. While authorities alleged he was trying to flee to Cuba, his legal team claimed he was kidnapped from Antigua. Despite India seeking his extradition, Dominica deported him back to Antigua.
Choksi later travelled to Belgium, reportedly to receive cancer treatment, where he has now been detained.
According to the agencies, Choksi, his company Gitanjali Gems, and others allegedly colluded with bank officials to fraudulently obtain Letters of Undertaking (LoUs) and enhance Foreign Letters of Credit (FLCs) without adhering to the required procedures.
This led to substantial wrongful losses for the bank.
Choksi’s arrest was based on two non-bailable warrants issued by a Mumbai court, dated May 23, 2018, and June 15, 2021, according to people familiar with the development.
Choksi is now preparing for a legal fight as his defence team prepares to seek bail and challenge efforts to extradite him to India.
His lawyers argue that there are valid grounds to oppose extradition, including his medical condition.
The 65-year-old fugitive diamond trader is wanted by the CBI and ED for his alleged role in defrauding PNB of nearly Rs 1,400 crore, along with his nephew Nirav Modi.
Choksi left India on January 2, 2018, initially travelling to the United States before settling in Antigua. He had acquired Antiguan citizenship in 2017, prior to fleeing the country.
In 2021, Choksi was arrested in Dominica under controversial circumstances. While authorities alleged he was trying to flee to Cuba, his legal team claimed he was kidnapped from Antigua. Despite India seeking his extradition, Dominica deported him back to Antigua.
Choksi later travelled to Belgium, reportedly to receive cancer treatment, where he has now been detained.
According to the agencies, Choksi, his company Gitanjali Gems, and others allegedly colluded with bank officials to fraudulently obtain Letters of Undertaking (LoUs) and enhance Foreign Letters of Credit (FLCs) without adhering to the required procedures.
This led to substantial wrongful losses for the bank.
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