- By Nidhi Giri
- Mon, 14 Apr 2025 02:54 PM (IST)
- Source:JND
The Indian government is working towards a quick extradition of Mehul Choksi (65), fugitive diamond merchant, who was arrested in Belgium over the weekend for his alleged involvement in the Rs 13,500 crore Punjab National Bank (PNB) loan fraud case. If Mehul Choksi is brought to India, it will be the second high-profile extradition this year, after 26/11 Mumbai attack accused, Tahawwur Rana, was extradited from the United States.
A request to deport Choksi to India has been made, as per NDTV sources, stressing the government will use every legal tool available to bring him back.
Mehul Choksi evaded arrest as he fled India in January 2018, weeks before the scam came to light. He travelled via the United States to Antigua.He had applied for the citizenship of Antigua and Barbuda in 2017, which was approved, and he finally assumed the citizenship in January 2018.
"My client is not a flight risk. He is extremely sick and is undergoing treatment for cancer," his lawyer, Vijay Aggarwal told reporters after the arrest. Mr Choksi and his wife, Preeti Choksi, a Belgian citizen, had been living in Antwerp after he obtained a 'residency card'.
PNB Case Against Mehul Choksi
Mehul Choksi is facing legal action from both the Central Bureau of Investigation (CBI) and the Enforcement Directorate (ED). Following a complaint from Punjab National Bank (PNB), the CBI implicated Choksi and his companies, including Gitanjali Gems, in 2018. The complaint accused them of using fraudulent letters of undertaking, which led to significant financial losses for the bank.
After this, the ED filed charges of money laundering, claiming that Mehul Choksi and others had illegally channeled the illicit funds into overseas accounts.
Mehul Choksi is being prosecuted under the Prevention of Money Laundering Act, along with various provisions related to cheating, criminal conspiracy under the Indian Penal Code, and sections of the Prevention of Corruption Act.
A similar case was filed against his nephew, Nirav Modi, accusing both of conspiring with PNB staff to carry out the multi-crore fraud. Last December, the CBI initiated another investigation, accusing Choksi of defrauding over Rs 6,700 crore by diverting loan funds in the latest scam.
In February this year, a special court in Mumbai permitted the auction of 13 properties belonging to Gitanjali Gems Limited, a company linked to Mehul Choksi.
Judge SM Menjoge, presiding over the special court handling cases under the Prevention of Money Laundering Act (PMLA), approved the official liquidator's request, emphasising that if the properties were left idle without upkeep, their value would inevitably diminish.