Fugitive diamond trader Mehul Choksi, wanted in the Rs 13,000 crore Punjab National Bank (PNB) loan fraud case, has been detained in Belgium following an extradition request by Indian agencies, official sources said Monday.
The Central Bureau of Investigation (CBI) and the Enforcement Directorate (ED) initiated the request after locating Choksi in Belgium, where he had reportedly gone for medical treatment. He had been living in Antigua since fleeing India in 2018.
Though an Interpol Red Notice against him was deleted recently, Indian authorities continued to pursue his extradition. Two arrest warrants issued by a Mumbai court in 2018 and 2021 were shared with Belgian officials as part of the process. Choksi may seek bail on medical grounds, sources added.
Choksi, his nephew Nirav Modi, their firms, and several bank officials were named by the CBI and ED in 2018 for allegedly defrauding PNB’s Brady House branch by illegally obtaining Letters of Undertaking (LoUs) and Foreign Letters of Credit (FLCs), bypassing banking protocols.
These guarantees, issued without proper approval or collateral, enabled overseas banks to lend money to Choksi’s companies. When the firms defaulted, PNB bore the liability, paying Rs 6,344.97 crore, including interest.
The CBI has filed two chargesheets, while the ED has filed three prosecution complaints in the case. Assets worth Rs 2,565.90 crore linked to Choksi have been attached and are being monetised as per court orders.
Meanwhile, Nirav Modi remains jailed in London since 2019 and is contesting his extradition to India.
