Belgium, April 14: Absconding diamantaire wanted in Rs 13,000 crore PNB “fraud” case; India submits court warrants, ED assets seized worth over Rs 2,500 crore
Fugitive diamantaire Mehul Choksi has been arrested in Belgium following an extradition request by Indian authorities in connection with the Rs 13,000 crore Punjab National Bank (PNB) loan “fraud” case, official sources confirmed on Monday.
The 65-year-old, second prime accused after nephew Nirav Modi, was taken into custody on Saturday based on requests filed by the Central Bureau of Investigation (CBI) and Enforcement Directorate (ED).
Choksi, who had been living in Antigua since 2018, had recently travelled to Belgium citing medical treatment. The Interpol Red Notice against him was previously withdrawn, prompting Indian agencies to pursue extradition directly through the courts.
Two arrest warrants from 2018 and 2021 issued by a Mumbai special court were submitted as part of the request, sources said.
Choksi’s lawyer, Vijay Agarwal, confirmed the arrest and said his client is currently in a Belgian prison. “The procedure there is to file an appeal, not apply for bail. We’ll argue he’s not a flight risk and is seriously ill, undergoing cancer treatment,” he said.
He added the defence would argue the case is politically motivated and cite concerns over prison conditions in India.
Choksi, Nirav Modi, and others were booked in 2018 for allegedly defrauding PNB’s Brady House branch in Mumbai by obtaining fraudulent Letters of Undertaking (LoUs) and Foreign Letters of Credit (FLCs) without required approvals.
The CBI has filed two charge sheets against Choksi and the ED has filed three prosecution complaints. The ED has also seized assets worth Rs 2,565.9 crore linked to him, which the court has permitted to be monetised.
Modi, meanwhile, remains jailed in London since 2019 and is contesting extradition.
According to the agencies, 165 LoUs and 58 FLCs were issued by PNB in early 2017 without entry in the core banking system, allowing fraudulent foreign credit worth thousands of crores. PNB ultimately paid Rs 6,344.97 crore to overseas banks after the companies defaulted.
