Mehul Choksi, fugitive diamond merchant, arrested in Belgium on India's extradition request: Report

Fugitive diamond merchant Mehul Choksi was arrested by Belgian authorities on Saturday at the extradition request issued by the Central Bureau of Investigation. The infamous diamond merchant was the key accused in the Rs 14,000-crore Punjab National Bank fraud case that rocked the Indian banking institution.

Sources close to the matter told The Economic Times that Choksi’s arrest was based on two non-bailable warrants issued by a Mumbai court, dated May 23, 2018, and June 15, 2021. Earlier, Indian officials had asked Belgium to initiate extradition proceedings for the fugitive after he was located in the country.

Sources who spoke on the condition of anonymity told The Economic Times that Choksi was allegedly planning to move to Switzerland for medical treatment at a cancer hospital before he the arrest. The Ministry of External Affairs has yet to comment on the matter.

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Choksi likely to file for bail

While the CBI sought his immediate detention, Belgian authorities sought a formal extradition request from Indian authorities. It is pertinent to note that Choksi is a resident of Antigua and was travelling to Europe to seek medical treatment.

Sources told The Economic Times that Choksi is likely to seek bail and immediate release due to ill health and other reasons. Meanwhile, Indian agencies will be working on opposing Choksi’s bail and seeking his extradition. CBI and the Directorate of Enforcement (ED) have charged Choksi and his nephew, Nirav Modi, with corruption and money laundering for allegedly defrauding PNB of ₹13,400 crore while colluding with bank officials.

In February this year, Choksi told the Mumbai court that he was suffering from blood cancer and is due to start radiation therapy, so can’t travel to India to stand trial. He then filed a separate application in the special court in Belgium, claiming that he had been suffering from chronic lymphocytic leukaemia and lymphoma since 2023.

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In January, news broke out that ED had zeroed in on the alleged proceeds of crime totalling nearly Rs 80 crore held abroad by Choksi. The Indian agency then reached out to several countries, asking them to monetise the assets and transfer the proceeds to India. The authorities are now seeking ways to return the money to the victims of the alleged fraud.

According to The Economic Times, the agency identified five properties owned by Choksi and his entities in Thailand, Dubai, Japan and the US. In December last year, the ED said that it had started restoring assets worth over Rs 2,500 crore as part of its probe in the case.

“In pursuance to the order, the process of handing over of assets has been initiated and properties worth more than Rs 125 crore have been handed over to the liquidator of Gitanjali Gems,” the federal agency said in a statement.

With inputs from agencies.