Belgian court clears fugitive jeweller Mehul Choksi’s extradition
New Delhi: A Belgian court on Friday approved the extradition of fugitive diamantaire Mehul Choksi to India, ruling that his arrest by Belgian authorities on India’s request was valid, officials familiar with the development said. The decision marks a significant legal step in India’s ongoing effort to bring Choksi to justice for his alleged role in the Rs 13,000 crore Punjab National Bank (PNB) fraud case.
“The order has come in our favour. The court has termed his arrest by the Belgian authorities on India’s request valid. The first legal step in getting him extradited is now clear,” a senior official said. Choksi, 66, retains the option of appealing the decision in a higher Belgian court.
Choksi was apprehended in Belgium on April 11, following an extradition request filed by the Central Bureau of Investigation (CBI). His bail applications have been consistently rejected by Belgian courts. During hearings in mid-September, the court considered arguments from Belgian prosecutors and Choksi’s defence, concluding that the arrest procedure met legal requirements. Prosecutors had stressed that Choksi remains a flight risk and should remain in detention.
Belgian authorities received support from Indian officials, including representatives from the CBI and the Ministry of External Affairs, who outlined Choksi’s alleged involvement in the multi-crore scam, which he reportedly orchestrated alongside his nephew Nirav Modi. The scam allegedly involved fraudulent letters of undertaking (LoUs) and foreign letters of credit (FLCs) issued by PNB’s Brady House branch in Mumbai during March-April 2017, resulting in Rs 13,000 crore in losses.
India has also provided detailed assurances regarding Choksi’s conditions of detention. He would be housed in Barrack No. 12 at Arthur Road Jail in Mumbai, where space allocations meet the minimum requirements of the Committee for the Prevention of Torture and Inhuman or Degrading Treatment or Punishment (CPT) of Europe, the Union Home Ministry informed Belgian authorities on September 4. The cell measures approximately 20 feet by 15 feet, includes a separate toilet and washroom, ventilators, a grilled main door for air circulation, and security measures. Inmates receive daily cleaning, fresh drinking water, outdoor exercise, and recreational facilities such as chess, carrom, and badminton. Art of Living yoga sessions, access to newspapers, television, videoconferencing, telemedicine services, and regular meetings with lawyers and blood relatives are also provided.
Choksi had earlier fled to Antigua and Barbuda, where he obtained citizenship, before being stopped in Belgium. His nephew Nirav Modi, also a fugitive economic offender, has been held in a London jail since 2019 and is contesting his extradition to India.
As part of its extradition request, India invoked provisions under the United Nations Convention against Transnational Organised Crime (UNTOC) and the United Nations Convention against Corruption (UNCAC). Two open-ended arrest warrants issued by a special court in Mumbai in 2018 and 2021 were also shared with Belgian authorities.
The CBI’s investigation found that PNB officials at Brady House issued 165 LoUs and 58 FLCs, leading to 311 discounted bills without sanctioned limits, cash margins, or entries in the bank’s central system. Funds were advanced to Choksi’s firms by overseas banks, including SBI Mauritius, Allahabad Bank Hong Kong, Axis Bank Hong Kong, Bank of India Antwerp, Canara Bank Manama, and SBI Frankfurt. Since the companies failed to repay the loans, PNB had to cover Rs 6,344.97 crore (USD 965.18 million), including overdue interest, to the foreign banks, the CBI’s supplementary chargesheet stated.
