In a bid to confiscate the foreign assets of diamond merchant Mehul Choksi, the Enforcement Directorate (ED) has reached out to 10 countries to confiscate his foreign assets, reported Economics Times. Choksi, a key accused in the Rs 13,850 crore Punjab National Bank fraud case, was arrested over the weekend in Belgium on India's request and is likely to remain in the Belgian jail for at least a week.
ED is seeking to liquidate Choksi's assets and return the money to victims of the bank fraud, even as the Central Bureau of Investigation is pushing for extradition, the report stated.
The investigating agency has sent as many as 15 letters rogatory over the past few months to Hong Kong, Singapore, Thailand, the US, Belgium, China, Italy, Japan, the UK and the United Arab Emirates, formally requesting details of companies, assets, bank accounts and other information related to Choksi and his Gitanjali Group of companies.
The letters addressed to Thailand, the US, Japan, and the Emirates also request the enforcement of provisional orders issued by Indian authorities for seizing Choksi's assets valued at Rs 85 crore.
"The aim is to return assets to the victims of the fraud. Although the extradition process for Mehul Choksi may take time, recovering the assets should not," an ED official told ET.
In the meantime, Choksi's request for release from prison is expected to be heard within a week, the Economics Times said citing sources. The diamond trader, who states he is receiving treatment for cancer, is likely to seek bail on health grounds and based on "community ties."
If Belgian authorities determine India's request aligns with their laws, a local court will consider it, assessing whether the principle of dual criminality and other criteria are satisfied. Should the court rule in favor of the Indian government and issue an extradition order, the final decision will be made at the ministerial level in Belgium, according to knowledgeable sources.
Choksi's nephew, Nirav Modi, another major suspect in the bank fraud case, is currently incarcerated in London while New Delhi seeks his return, the report stated further.
So far, the ED has secured restitution orders worth Rs 2,566 crore for the fraud victims and has attached assets totaling approximately Rs 1,968 crore in this case. This includes 105 immovable properties valued over Rs 1,600 crore across various states, as well as jewellery, diamonds, and precious metals worth around Rs 230 crore, sources mentioned to ET.
During searches conducted throughout India, the ED discovered movable assets (jewellery and other valuables) estimated at about Rs 598 crore, the sources said.
In October of the previous year, India submitted a request to Belgium for Choksi's extradition, after which the Belgian police apprehended him.
Choksi had informed a Mumbai court through his attorney that he was diagnosed with blood cancer and was set to begin radiation therapy, which prevented him from traveling to India to face trial.
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