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Diamantaire to fugitive: Mehul Choksi arrested in Belgium, what charges he faces in India?
Mehul Choksi was living in Antwerp with his wife after getting an ‘F residency card’. In February, his lawyer said he was undergoing cancer treatment.
Fugitive diamond trader Mehul Choksi has been arrested in Belgium on India’s extradition request over his alleged involvement in the ₹13,500 crore Punjab National Bank (PNB) loan fraud case.
Choksi was said to be living in Antwerp with his wife, Preeti Choksi, after securing a ‘F residency card’ in Belgium. In February, his lawyer informed a special court in Mumbai that Choksi is believed to be undergoing cancer treatment in Belgium.
After the withdrawal of the Interpol Red Notice against him, Indian agencies, including the Enforcement Directorate and the CBI, moved to extradite Mehul Choksi from Belgium, PTI reported.
Choksi was added to Interpol's Red Notice list in December 2018, and the removal of the notice meant he could travel freely anywhere in the world, except India.
Choksi was reportedly planning to move to Switzerland for treatment at a well-known cancer hospital, citing medical grounds.
What is the PNB case against Mehul Choksi?
Choksi is facing legal action from both the Central Bureau of Investigation (CBI) and the Enforcement Directorate (ED). The CBI first implicated Choksi and his companies, including Gitanjali Gems, in 2018, following a complaint from Punjab National Bank (PNB).
The complaint accused them of using fraudulent letters of undertaking, which led to significant financial losses for the bank.
Subsequently, the ED filed charges of money laundering, claiming that Choksi and others had illegally channeled the illicit funds into overseas accounts.
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 ₹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 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.
With PTI inputs
