India has been trying to catch hold of the elusive diamond trader Mehul Choksi for years. But recent news on April 12 has provided a ray of hope for Indian authorities to bring him back home. The 65-year-old entrepreneur, who is accused in the gargantuan Punjab National Bank (PNB) loan fraud case, was nabbed by Belgian police in Antwerp.

This arrest is a follow-up to India’s application through the Central Bureau of Investigation (CBI), and Choksi is currently detained in Belgium pending extradition proceedings.

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Arrest of Mehul Choksi in Belgium

The arrest of Mehul Choksi followed months of media rumors about his location. Reports established that Choksi had been staying in Antwerp with his wife, Preeti Choksi, after obtaining a residency card in Belgium. He had relocated there from Antigua and Barbuda for medical reasons, and it was reported that he had applied for Belgian residency in 2023.

Belgian authorities confirmed Choksi’s presence in the country in late March 2023, signaling the start of intensified discussions regarding his extradition. On Saturday, April 12, the Belgian police arrested Choksi after responding to two open-ended arrest warrants issued by a Mumbai court. These warrants were dated May 23, 2018, and June 15, 2021, and were linked to the PNB scam.

Extradition of Mehul Choksi: A Complicated Process

Even after his arrest, Choksi is likely to seek bail, claiming poor health as a major reason for his release. But Punjab National Bank scam whistleblower Hariprasad SV opines that the extradition process is going to be a tough one. In his view, Choksi is likely to engage the best lawyers in Europe to prevent extradition, just like other high-profile fugitives like Vijay Mallya have done in the past.

Extradition is not a straightforward process. Choksi has a fat wallet, and he will hire the best attorneys in Europe to dodge the process like Vijay Mallya has been doing. I don’t think it will be easy for India to bring him back,” Hariprasad said in an interview with ANI. He further mentioned that Choksi had once dodged extradition when he was arrested in Dominica.

Mehul Choksi’s Background and Flight from India

Mehul Choksi is the owner of the Gitanjali Group, a prominent retail jewelry firm with over 4,000 stores across India. Born in Punjab, India, Choksi followed in his family’s footsteps, becoming a successful businessman. He gained notoriety in early 2018 when he, along with his nephew Nirav Modi, was implicated in one of the largest banking frauds in India’s history. Choksi and Modi are said to have cheated the Punjab National Bank (PNB) of Rs 13,850 crore through fake Letters of Undertaking (LoUs), which were sanctioned by corrupt bank officials.

Mehul Choksi and Modi had left India in January 2018, before the PNB fraud to its full extent was made public. Choksi had already obtained citizenship in Antigua and Barbuda by May 2017 and swore allegiance to the nation in January 2018. After the scandal, Choksi lived in Antigua and Barbuda until 2021, when he was found in Dominica after trying to escape to Cuba. After being arrested by Dominican authorities, Choksi was given residency in Belgium in 2023, making it even more difficult for him to be extradited to India.

PNB Scam and Legal Issues

The PNB loan scam case, in which Choksi and his nephew Nirav Modi were accused, was the largest banking fraud in Indian history. Choksi and Modi allegedly issued fake Letters of Undertaking (LoUs) and Foreign Letters of Credit (FLCs) to drain the money from the bank. The LoUs enabled the accused to raise credit from abroad despite no security being issued as collateral, resulting in huge losses for the bank.

In addition to the PNB fraud, Choksi has also had legal issues with other banks. It has been reported that his business, Gitanjali Gems, defaulted on loans borrowed from ICICI Bank, IDBI Bank, and Life Insurance Corporation of India (LIC). He has also been accused of breaking multiple Foreign Exchange Management Act (FEMA) laws in India.

Choksi is currently facing multiple charges, including money laundering under the Prevention of Money Laundering Act (PMLA), criminal conspiracy, and cheating under the Indian Penal Code. His legal battles continue, with Indian authorities determined to bring him to justice.

Choksi’s Claims of Health Issues

Throughout the extradition process, Choksi has maintained that he is suffering from blood cancer and is unfit to travel. His attorneys have employed this as a defense, claiming that his health condition would render him incapable of making the trip back to India. Indian authorities, however, have responded by suggesting that if Choksi could fly from Antigua to Belgium for medical care, he ought to be able to travel back to India, where proper medical facilities are in place.

Meanwhile, his nephew, Nirav Modi, remains incarcerated in the UK, where he is contesting extradition proceedings. While Modi’s case progresses through the UK courts, Choksi’s arrest in Belgium represents a crucial step in India’s efforts to hold both men accountable for their role in the PNB scam.