Fugitive diamond trader Mehul Choksi, who is wanted in the Punjab National Bank (PNB) loan fraud case, has been arrested by Belgian authorities, Central Bureau of Investigation (CBI) sources have reportedly said.
His arrest followed a fresh extradition request from India. The 65-year-old was arrested on Saturday, April 12. Choksi is living in Antwerp, Belgium, with his wife, Preeti Choksi, after obtaining a residency permit.
It is anticipated that Choksi will apply for bail on health reasons and other mitigating circumstances. Together with his nephew Nirav Modi, Choksi is charged by the CBI and the Enforcement Directorate (ED) with masterminding a gigantic Rs 13,850 crore fraud at PNB. The two are accused of having manipulated the bank's systems by procuring fake Letters of Undertaking (LoUs) and Foreign Letters of Credit (FLCs) in connivance with fraudulent bank officials at the Brady House branch in Mumbai.
The CBI has named Choksi, Nirav Modi, their respective firms, some bank officials, and others in cases with charges of conspiracy, fraud, and corruption. Both Modi and Choksi fled India in January 2018, barely before the scandal erupted. Since then, Choksi has been living with his wife in Belgium, who is a Belgian citizen. He had previously taken on Antigua and Barbuda citizenship, but is thought to have left the Caribbean island due to medical conditions. In 2021, he went missing from Antigua for a brief while and was eventually found in Dominica, another Caribbean country. Choksi is perhaps most famous as the founder of Gitanjali Gems.
On the other hand, Nirav Modi is still in jail in the United Kingdom as he battles extradition proceedings mounted by Indian authorities. He was formally declared a fugitive economic offender (FEO) in 2019. In the case of Choksi, the ED's plea to declare him an FEO has been pending since 2018. Indian agencies revived their attempts to extradite Choksi after the Interpol Red Notice against him was withdrawn, insiders said.
Despite the withdrawal of the Red Notice, Indian investigative agencies pressed ahead with a fresh request, which eventually led to Choksi’s apprehension in Belgium. Sources have confirmed that efforts are currently underway to secure his return to India. However, potential legal challenges in Belgian courts could pose delays. An official statement confirming his arrest and further details is still awaited.
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