Mehul Choksi, a Indian diamond merchant, has been arrested in Belgium at the request of the Indian government. Choksi is wanted in India for allegedly defrauding one of the country’s largest banks, Punjab National Bank (PNB), of nearly $1.8 billion. He had been living abroad since 2018 and was tracked down by Belgian authorities.
Choksi’s lawyer, Vijay Aggarwal, said they will appeal against his detention and oppose his extradition to India. The grounds for appeal include Choksi’s claims that he is not a flight risk and that he is undergoing cancer treatment. They will also contest the extradition on grounds that there isn’t enough evidence against him and that the extradition request is politically motivated.
Choksi and his nephew, Nirav Modi, are both wanted by Indian authorities in connection with the PNB fraud case. Modi is currently lodged in a prison in London and is awaiting extradition to India. Both Choksi and Modi were high-profile diamond traders and were known for their lavish lifestyles.
The Enforcement Directorate (ED), India’s financial crimes agency, had issued non-bailable warrants for Choksi’s arrest in 2018 and 2021, but it is unclear why the action was not taken earlier. The ED has accused Choksi and Modi of colluding with PNB employees to get fraudulent advances for payments to overseas suppliers of jewels, and then laundering the funds.
Hariprasad SV, a Bengaluru-based entrepreneur who had alerted authorities about the alleged scam at PNB, welcomed Choksi’s arrest and called for him to be brought back to India to face justice. The Indian government has hailed the arrest as a major breakthrough in its efforts to recover the stolen funds and bring the perpetrators to justice.