NEW DELHI: Mehul Choksi, a key accused in the Rs 14,000-crore Punjab National Bank (PNB) fraud case, was arrested in Belgium on Saturday in response to an extradition request from India.
The arrest was made based on two non-bailable warrants issued by a Mumbai court in 2018 and 2021. Choksi, a fugitive diamond merchant, is now preparing to challenge his extradition, with his legal team seeking bail and questioning the validity of the extradition due to his medical condition.
The 65-year-old is wanted by the Central Bureau of Investigation (CBI) and Enforcement Directorate (ED) for his alleged role in the PNB fraud, where he, alongside his nephew Nirav Modi, defrauded the bank of nearly Rs 1,400 crore.
PNB whistle-blower Hariprasad SV expressed his satisfaction over the arrest, emphasizing the importance of bringing Choksi back to India and recovering the stolen funds. However, he cautioned that the extradition process may not be straightforward, referencing previous attempts to bring Choksi back from Antigua.
Choksi, who fled India in January 2018, initially traveled to the US before settling in Antigua after acquiring citizenship there in 2017. In 2021, he was arrested in Dominica but was deported back to Antigua after a failed extradition attempt. He later moved to Belgium, reportedly for cancer treatment, where he was apprehended.
According to Indian agencies, Choksi, along with his company Gitanjali Gems, allegedly colluded with PNB officials to fraudulently obtain Letters of Undertaking (LoUs) and manipulate Foreign Letters of Credit (FLCs), bypassing standard procedures.