By Kavita Mistry 
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Mehul Choksi’s bail plea was rejected by the Belgian Court of Appeal ahead of his extradition hearing, as CBI cited his history of fleeing jurisdictions in PNB fraud case.
Fugitive businessman Mehul Choksi | File Image/ IANS
In a major setback for fugitive Indian diamond merchant and businessman Mehul Choksi, wanted in connection with Rs 13,500 crore Punjab National Bank (PNB) loan fraud case, his latest bail petition was rejected by a Belgian Court of Appeal, news agency PTI reported, citing the officials.
Choksi, 65, was arrested by Antwerp police on April 11, based on an extradition request sent by CBI, and has been lodged in the prison there for over four months now.
The court rejected the appeal on strong reasons conveyed by the CBI to the Belgian prosecution that Choksi had escaped from many jurisdictions earlier as well to evade legal proceedings, and may flee to another country if let out on bail, the officials said.
Choksi had applied for bail again on August 22, offering to be put under surveillance while staying at home, which was rejected by the Court of Appeal in Brussels on August 26.
His earlier bail application, heard by the Court of Cassation in Belgium, was also rejected.
The decision comes just days before his extradition hearing scheduled in mid-September. The CBI is assisting Belgian prosecutors with case files, evidence, and legal arguments, and has also engaged a European law firm to strengthen the extradition case.
The Indian agencies have shared two open-ended arrest warrants, issued by a special court in Mumbai in 2018 and 2021, as part of the request.
What’s The Case?
Choksi and his nephew Nirav Modi are wanted in the Rs 13000 crore fraud in Punjab National Bank that they allegedly orchestrated through fraudulent Letters of Undertaking in connivance with some bank officials at the Brady House branch in Mumbai, they said.
Nirav Modi, declared a fugitive economic offender, has been lodged in a London jail since he was held by the authorities there in 2019 on the basis of a legal request made by the ED and the CBI in this case. He is contesting extradition to India.
Choksi, who has been on the run from Indian authorities after his alleged massive financial scam, was arrested in Belgium in April this year.
Choksi was reportedly living in Belgium’s Antwerp with his wife, Preeti Choksi, who is a Belgian citizen, after securing an ‘F Residency Card’ in the country. The fugitive diamantaire, who is wanted in connection with the infamous Punjab National Bank (PNB) fraud case, was granted residency in Belgium on November 15, 2023.
Mehul Choksi And His Alleged Crimes
- PNB Fraud Case: Choksi remains a key accused in the massive fraud involving Punjab National Bank (PNB), along with his nephew Nirav Modi. The scam is valued at around Rs 14,000 crore.
- Use of LoUs and FLCs: Choksi allegedly obtained letters of undertaking (LoUs) and foreign letters of credit (FLCs) by bribing officials from PNB’s Brady House branch in Mumbai. He later used it to secure overseas credit from foreign banks.
- Money Laundering: Investigations by the Enforcement Directorate (ED) and Central Bureau of Investigation (CBI) suggest that Choksi laundered large sums of money through shell companies and dummy entities abroad. In 2022, ED filed its third chargesheet against Choksi, his wife Priti Choksi and others over their alleged involvement in the loan fraud case.
- Criminal Conspiracy and Cheating: Choksi is charged with conspiracy to cheat, criminal breach of trust, and corruption, under various sections of the Indian Penal Code and Prevention of Money Laundering Act (PMLA).
- Declared As FEO: Apart from being wanted by CBI and ED, Choksi was declared a Fugitive Economic Offender (FEO) by the Government of India.
(With inputs from agencies)
Shobhit Gupta is a sub-editor at News18.com and covers India and International news. He is interested in day to day political affairs in India and geopolitics. He earned his BA Journalism (Hons) degree from Ben…Read More
Shobhit Gupta is a sub-editor at News18.com and covers India and International news. He is interested in day to day political affairs in India and geopolitics. He earned his BA Journalism (Hons) degree from Ben… Read More
Read More