Mehul Choksi, fugitive businessman, arrested in Belgium on India’s extradition request

Fugitive diamantaire Mehul Choksi has been arrested in Belgium on India’s extradition request for his role in the PNB bank loan ‘fraud’ case, a development that comes weeks after media reports confirmed that the businessman is living in country’s Antwerp with his wife, Preeti Choksi, after obtaining a ‘residency card’ there.

The action against the fugitive jeweller was taken on Saturday, according to news agency PTI, which quoted sources as saying that after the Interpol Red Notice against him for arrest was “deleted”, Indian agencies, the Enforcement Directorate (ED) and the Central Bureau of Investigation (CBI), moved for his extradition from Belgium.

Associated Times, a media outlet that focuses on the Caribbean region, had in March also reported that Indian authorities have requested the Belgian authorities to initiate his extradition to India.

Who is Mehul Choksi, what is he accused of

The fugitive diamantaire, founder of Gitanjali Gems, is wanted in connection with the Punjab National Bank (PNB) fraud case and was granted residency in Belgium on November 15, 2023.

Mehul Choksi, wanted in India for his alleged involvement in the ₹13,500-crore bank loan fraud case, was previously residing in Antigua and Barbuda before relocating to Belgium.

His wife, Preeti Choksi, is a Belgian citizen.

According to the Associated Times report, Mehul Choksi secured an ‘F Residency Card’ to stay in Belgium. However, he submitted misleading and fabricated documents, including false declarations and forged papers, to Belgian authorities in an attempt to obtain residency and evade extradition to India, the report said.

It is also alleged that Mehul Choksi failed to disclose his Indian and Antiguan citizenships and misrepresented his nationality during the application process.

Sources cited in the report further stated that Mehul Choksi was planning to move to Switzerland, allegedly for medical treatment at a renowned cancer hospital. Mehul Choksi’s lawyer in February had also told a Mumbai court that he was in Belgium for medical treatment of suspected cancer.

Mehul Choksi, along with his nephew Nirav Modi, is accused of defrauding the state-run Punjab National Bank (PNB) by fraudulently obtaining letters of undertaking, leading to a massive financial scandal.

Nirav Modi remains imprisoned in London and continues to fight his extradition to India after multiple bail rejections, Mehul Choksi made headlines in May 2021 when he went missing from Antigua, only to be later located and returned there.

A special PMLA court in Mumbai has been hearing the Enforcement Directorate’s plea to declare Mehul Choksi a fugitive economic offender (FEO), which would allow the government to initiate action to confiscate offender’s properties.

Nirav Modi was declared FEO in 2019, while the ED’s plea against Mehul Choksi has been pending since 2018.