Who Is Mehul Choksi? What Are The Charges Pressed Against Him In India?

Fugitive diamond trader Mehul Choksi has been arrested in Belgium at India's request for extradition, in connection with his alleged role in the ₹13,500 crore Punjab National Bank (PNB) loan fraud case.

Choksi was reportedly residing in Antwerp with his wife, Preeti Choksi, having obtained an 'F residency card' in Belgium.

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In February, his legal counsel informed a special court in Mumbai that Choksi was believed to be receiving cancer treatment in the country.

Following the withdrawal of the Interpol Red Notice against him, Indian authorities, including the Enforcement Directorate (ED) and the Central Bureau of Investigation (CBI), promptly began efforts to extradite him from Belgium, as per reports by PTI.

Choksi was originally added to Interpol's Red Notice list in December 2018. However, with the notice withdrawn, he was permitted to travel internationally-excluding India. He had reportedly been planning to relocate to Switzerland for treatment at a renowned cancer hospital, citing medical reasons.

Case against Choksi

Choksi is currently facing legal proceedings initiated by both the CBI and the ED. The CBI initially named Choksi and his firms-most notably Gitanjali Gems-in 2018 after a complaint was lodged by Punjab National Bank.

The complaint alleged the use of fraudulent Letters of Undertaking (LoUs), resulting in extensive financial losses for the bank.

The ED subsequently charged Choksi with money laundering, alleging he and his associates had funnelled illicit funds into offshore accounts.

He is being prosecuted under the Prevention of Money Laundering Act (PMLA), alongside charges of cheating and criminal conspiracy under the Indian Penal Code, as well as provisions from the Prevention of Corruption Act.

His nephew, Nirav Modi, is also implicated in a similar case, accused of colluding with PNB officials in perpetrating the multi-crore fraud. In December last year, the CBI launched another case against Choksi, accusing him of embezzling an additional ₹6,700 crore by misusing loan funds.

In February, a special court in Mumbai granted permission to auction 13 properties belonging to Gitanjali Gems Limited, one of Choksi's associated companies.

Judge S M Menjoge, who presides over the special court for PMLA cases, authorised the official liquidator's request, noting that leaving the properties idle without maintenance would result in depreciation of their value.

(With PTI inputs)