Belgian Court Approves Mehul Choksi’s Extradition to India in Rs.13,000 Crore PNB Fraud Case
A court in Belgium has approved the extradition of fugitive diamond trader Mehul Choksi to India. Mehul Choksi is wanted in the ₹13,000 crore Punjab National Bank (PNB) fraud case.
The court in Antwerp yesterday ruled that Choksi’s arrest by Belgian police, based on India’s request, was valid. This is considered a major step toward bringing the fugitive businessman back to India to face legal proceedings.
Mehul Choksi was arrested on 11 April by Antwerp police after a formal extradition request was made by the Central Bureau of Investigation (CBI). He has remained in custody since then, and several of his bail pleas have been rejected due to concerns that he could flee.
During the hearing, Belgian prosecutors supported India’s extradition request, while Choksi’s lawyers opposed it. The court said that all charges against him, including cheating, criminal conspiracy, and corruption, are also recognised as offences under Belgian law.
Choksi now has 15 days to challenge the decision in Belgium’s Supreme Court. If he does not file an appeal, or if the appeal is rejected, the process to bring him back to India will move forward.
PNB Rs.13000 crore Fraud Case
The ₹13,000 crore Punjab National Bank fraud case involving fugitive businessmen Mehul Choksi and Nirav Modi is considered one of the biggest banking scams in India.
The fraud came to light in 2018 when officials at PNB’s Brady House branch in Mumbai discovered that fraudulent Letters of Undertaking (LoUs) had been issued without proper approval or entries in the bank’s core banking system.
These LoUs were used to obtain huge overseas loans from foreign branches of Indian banks. According to investigation agencies, some PNB officials allegedly colluded with companies linked to Nirav Modi and Mehul Choksi and issued fake guarantees for several years.
The funds were allegedly diverted through shell companies and overseas transactions. Initially, the fraud amount was reported around ₹11,000 crore, but later estimates crossed ₹13,000 crore. After the scam surfaced, Nirav Modi and Mehul Choksi left India.
Nirav Modi was later arrested in the United Kingdom in 2019 and has been fighting extradition. Mehul Choksi took citizenship of Antigua and Barbuda and was later arrested in Belgium following India’s extradition request.
Indian agencies such as the CBI and Enforcement Directorate (ED) have attached properties, jewellery, flats, bank accounts, and other assets linked to the accused in an attempt to recover the money.
The scam also exposed weaknesses in banking controls and the SWIFT messaging system used for international transactions. After the fraud, RBI and banks tightened monitoring systems, auditing standards, and rules related to LoUs and international banking operations.
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