After years of evasion, absconding diamantaire Mehul Choksi — wanted in the Rs 13,000 crore Punjab National Bank (PNB) scam — has been arrested in Belgium.
Choksi's arrest, seen as a big diplomatic victory for India, took place due to the persistent efforts by Indian investigative agencies who continued to pursue his extradition even after the Interpol Red Notice against him was "deleted".
Read: How fugitive diamond merchant Mehul Choksi was caught | Timeline
The arrest, which took place on April 12, follows a sustained campaign by the Central Bureau of Investigation (CBI) and the Enforcement Directorate (ED) to bring Choksi to justice.
The breakthrough came despite a major setback when Interpol “deleted” the Red Notice against him, sources told PTI.
According to an earlier report, the notice was taken down from Interpol’s website in 2023. Choksi was added to Interpol’s Red List in December 2018 after CBI’s request.
However, Indian agencies doubled down and pressed forward via the extradition route, keeping the case alive with the help of open-ended arrest warrants and diplomatic engagement.
Choksi, who fled India in 2018 and took up citizenship in Antigua, had surfaced in Belgium last year under the pretext of seeking medical treatment.
Sources say the authorities had been closely tracking his movements. When he was found to be planning a possible escape to Switzerland, Indian agencies moved quickly to ensure his detention.
According to official sources quoted by PTI: “At least two open-ended arrest warrants, issued by a special court in Mumbai in 2018 and 2021, have been shared by the Indian agencies with their Belgian counterparts as part of the extradition request.”
Formal extradition paperwork is now underway, they added. "Choksi may seek bail on health grounds," sources noted.
Choksi’s lawyer, Vijay Agarwal, confirmed the arrest.
“At the moment, he is in prison and there (Belgium), the procedure is not to apply for bail but file an appeal. During that appeal, request is made that he should not be kept in detention and he should be permitted to defend himself and oppose the extradition request while not being in custody.”
He added, “The obvious grounds for the appeal would be that Choksi is not a flight risk, is extremely sick and undergoing treatment for cancer.” Agarwal also hinted at the defense’s likely legal strategy, saying it would argue that the case was “political” and that the “human condition (in Indian prisons) was not good.”
What was the multi-crore PNB scam?
Choksi and his nephew Nirav Modi — both named as prime suspects in the PNB scam — were accused of orchestrating a large-scale fraud at the Brady House branch of PNB in Mumbai. They allegedly obtained Letters of Undertaking (LoUs) and Foreign Letters of Credit (FLCs) fraudulently in collusion with bank officials, bypassing protocols and causing massive losses.
According to CBI’s supplementary chargesheet, “Since the accused companies did not repay the amount availed against the said fraudulent LoUs and FLCs, PNB made the payment of Rs 6,344.97 crore ($965.18 million), including the overdue interest, to the overseas banks.”
Meanwhile, ED has attached or seized assets worth Rs 2,565.90 crore in connection with Choksi and has received court approval to monetise the properties.
Nirav Modi, also facing extradition, remains in custody in the UK where he has been lodged in a London jail since 2019.
(With inputs from agencies)
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