New Delhi: Jeweller Mehul Choksi has been arrested in Belgium as a prime suspect in the ₹13,500 crore scam against Punjab National Bank (PNB). The famous diamond businessman was arrested recently by Belgian authorities upon the request of the Central Bureau of Investigation (CBI) and the Directorate of Enforcement (ED). He fled India after his involvement in the scam came to light in 2018.
Diamond merchant Choksi, who owns the corrupt ‘Gitanjali Group’, shut down his operations with PNB in 2011, but the entire scam, which was almost a decade long, did not break out into the open until 2018. Choksi and his family fled the country and remained undetected for years before the fraud came to light. Finally, he was detained in Belgium, as he had gone there for medical assistance.
Belgian authorities took him into custody from a hospital here after Indian agencies appealed. The decision came three months after the CBI and ED had formally moved for his extradition. Choksi was about to escape to Switzerland, fearing arrest in Belgium after the Brussels judge arrested him quickly.
Prime Minister Narendra Modi, in recent talks with Belgian King Philippe, also discussed measures to bolster bilateral ties, including in the areas of trade, investment, and the Choksi case. This chat is thought to have hastened the arrest process.
Choksi acquired citizenship of Antigua and Barbuda after fleeing India. Later, he was arrested in Dominica for entering illegally. But his trial remained elusive to Choksi, as there was no extradition treaty for India with these countries.
This means his extradition to India will be much more straightforward, as India has an extradition treaty with Belgium that dates back to 1901. Both countries share a legal framework for extradition, and India hopes to return him.
Choksi spent years doing business in Belgium with the diamond circle, a critical entry into Belgium. With the help of his wife, a Belgian citizen, he was also granted an e-residency card in Belgium, letting him live and work in that country.
However, although Choksi is now detained, legal experts say he may seek to prolong his return proceedings via Belgium’s courts. When he is granted bail, this can be pushed forward, with his defence lawyers possibly seeking one.
In a separate incident, Choksi’s nephew also faces extradition proceedings in London. Forcibly bringing Choksi back to India would be a significant victory for Indian agencies, and the PNB fraud probe would undoubtedly gain crucial leads in such a scenario.
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