Mehul Choksi arrested in Belgium: How whistle-blower alerted govt of possible PNB scam in 2016

Mehul Choksi was arrested by law enforcement officials in Belgium on the extradition request made by Indian officials for his role in the PNB bank fraud.

As fugitive diamantaire Mehul Choksi got arrested in Belgium by the country's law enforcement authorities on the extradition request of the Central Bureau of Investigation (CBI), the Punjab National Bank (PNB) scam whistle-blower Hariprasad SV hailed the Indian government and termed the moment as a "great news" for all those cheated by him.

Mehul Choksi's legal team is reportedly preparing to fight a legal battle and oppose his extradition to India. (File Image)

"Wow, Mehul Choksi getting arrested in Belgium is great news not only for India but also for all those who got cheated him. The government must bring him back to India as soon as possible and justice must be delivered," news agency ANI quoted Hariprasad as saying.

India had made a extradition request to Belgium for Choksi's role in the PNB bank loan 'fraud' case. His arrest has come just weeks after media reports confirmed that the fugitive was living in Antwerp with his wife, Preeti Choksi, after obtaining a 'residency card' there.

Indian's Enforcement Directorate and the Central Bureau of Investigation reportedly moved for his extradition after the Interpol Red Notice against Choksi was "deleted". A news agency ANI report, citing sources, said that further preparations were being made for his return to India.

"Apart from bringing him back, the most important thing is to get back all those billions of dollars he looted from India and stashed anywhere in the world. Hopefully, the Government of India will succeed this time. Great news," Hariprasad added.

When PNB whistle-blower alerted govt in 2016

Hariprasad, a Bengaluru-based entrepreneur, had written to the Prime Minister's Office (PMO) in July 2016, raising concerns about a possible large-scale scam. He had pointed out that the balance sheets contained clear indicators that something was amiss.

The year before, in 2015, Hariprasad had filed a complaint with the Bengaluru Police against Choksi and his group companies after he was allegedly cheated by them.

After this, he wrote to several federal agencies, including ED, CBI and Securities and Exchange Board of India (SEBI), ministry of corporate affairs and then the PMO in 2016.

As many as 31 banks had been extending loans to Choksi's Gitanjali Group, with Prasad alleging that it had taken loans of up to ₹9,872 crores with restricted assets of just ₹25 to 30 crores.

Hariprasad said that after being cheated of nearly ₹10 crore by Gitanjali Gems, he detected a huge fraud in the company. At least 20 people and around 50 across the country fell prey to the company's fraud, he told The News Minute.

He also told the media outlet that he had received an acknowledgement on his complaint from the PMO.

"It won't take action on everything we write, I understand that. They forwarded it to Registrar of Companies (RoC) to look into the matter. It's the duty of RoC to look into details or contact me and ask me more questions to understand why I'm making these allegations. I can't blame PMO, it did its job of forwarding the complaint. PM can't get involved in everything. A system has been created and it has to get involved. But the system is not good enough," Hariprasad told News Minute.

Mehul Choksi prepping for legal battle

Meanwhile, Mehul Choksi is also preparing for a legal battle as his defence team plans to move for bail, claiming it will oppose his extradition. They reportedly said that Choksi has strong reasons to challenge the extradition request, citing health condition, among other arguments.

The 65-year-old diamond merchant had left India on January 2, 2018, and is wanted by the CBI and the ED for allegedly defrauding the PNB of ₹13, 850 crore. Nirav Modi, his nephew, was also involved with him in the fraud.

Initially he fled and travelled to the United States before settling in Antigua. He had taken the citizenship of Antigua in 2017, well before leaving India. He was later arrested in Dominica, allegedly trying to flee to Cuba, although his counsel had claimed that he had been kidnapped from Antigua, ANI reported.

Later, Dominica deported him back to Antigua despite India making an extradition representation in court. Choksi reportedly left Dominica to seek cancer treatment in Belgium.