Belgian court clears Mehul Choksi's extradition to India
What's the story
A Belgian court has cleared the extradition of fugitive diamantaire Mehul Choksi to India. The Antwerp court dismissed Choksi's appeal against his extradition, validating his arrest by Belgian authorities on India's request. The Central Bureau of Investigation (CBI) had sought Choksi's extradition in connection with a ₹13,000 crore bank fraud at Punjab National Bank (PNB).
Legal proceedings
Court accepted arguments by Belgian prosecutors
The court accepted arguments by Belgian prosecutors, backed by officials from India's Ministry of External Affairs and CBI. They presented evidence of fraud and fund diversion by Choksi, who is accused of siphoning off ₹6,400 crore from PNB. The Indian government assured Belgium that if extradited, Choksi would be housed in Barrack No. 12 at Arthur Road Jail in Mumbai with no risk of solitary confinement or overcrowding.
Fraud details
Choksi and Nirav Modi colluded in PNB scam
Choksi is accused of colluding with his nephew Nirav Modi in the PNB scam, which involved obtaining Letters of Undertaking (LoUs) without proper sanction or collateral. These LoUs were used to secure credit from foreign banks, leading to massive losses for PNB when the firms defaulted. In addition to bank fraud, Choksi faces charges of money laundering through shell companies and dummy firms.
Legal status
Choksi declared fugitive economic offender
Choksi has been declared a Fugitive Economic Offender (FEO) by India, allowing the government to seize assets linked to him. He initially fled to Antigua and Barbuda in 2018 and was later arrested in Belgium. While he can still appeal the Belgian court's decision in a higher court, this ruling is seen as a major step toward his extradition to India.