Mehul Choksi, fugitive diamond service provider, arrested in Belgium on India’s extradition request: Report

Fugitive diamond service provider
Mehul Choksi was arrested by Belgian authorities on Saturday on the extradition request issued by the Central Bureau of Investigation. The notorious diamond service provider was the important thing accused within the Rs 14,000-crore Punjab Nationwide Financial institution fraud case that rocked the Indian banking establishment.

Sources near the matter instructed The Financial Instances that Choksi’s arrest was based mostly on two non-bailable warrants issued by a Mumbai courtroom, dated Could 23, 2018, and June 15, 2021. Earlier,
Indian officers had requested Belgium to provoke extradition proceedings for the fugitive after he was positioned within the nation.

Sources who spoke on the situation of anonymity instructed The Financial Instances that Choksi was allegedly planning to maneuver to Switzerland for medical therapy at a most cancers hospital earlier than he the arrest. The Ministry of Exterior Affairs has but to touch upon the matter.

Choksi more likely to file for bail

Whereas the CBI sought his fast detention, Belgian authorities sought a proper extradition request from Indian authorities. It’s pertinent to notice that Choksi is a resident of Antigua and was travelling to Europe to hunt medical therapy.

Sources instructed The Financial Instances that Choksi is more likely to search bail and fast launch attributable to ailing well being and different causes. In the meantime, Indian businesses shall be engaged on opposing Choksi’s bail and searching for his extradition. CBI and the Directorate of Enforcement (ED) have charged Choksi and his nephew, Nirav Modi, with corruption and cash laundering for allegedly defrauding PNB of ₹13,400 crore whereas colluding with financial institution officers.

In February this yr, Choksi instructed the Mumbai courtroom that he was affected by blood most cancers and is because of begin radiation remedy, so can’t journey to India to face trial. He then filed a separate software within the particular courtroom in Belgium, claiming that he had been affected by persistent lymphocytic leukaemia and lymphoma since 2023.

In January, information broke out that ED had zeroed in on the alleged proceeds of crime totalling almost Rs 80 crore held overseas by Choksi. The Indian company then reached out to a number of international locations, asking them to monetise the belongings and switch the proceeds to India. The authorities are actually searching for methods to return the cash to the victims of the alleged fraud.

In keeping with The Financial Instances, the company recognized 5 properties owned by Choksi and his entities in Thailand, Dubai, Japan and the US. In December final yr, the ED mentioned that it had began restoring belongings value over Rs 2,500 crore as a part of its probe within the case.

“In pursuance to the order, the method of handing over of belongings has been initiated and properties value greater than Rs 125 crore have been handed over to the liquidator of Gitanjali Gems,” the federal company mentioned in an announcement.

With inputs from businesses.