Fugitive Indian diamantaire Mehul Choksi, wanted in the PNB loan fraud case, has been arrested in Belgium on India’s extradition request, according to reports.
The 65-year-old was detained on Saturday and is currently in a Belgian jail, news reports said, quoting sources in the CBI, which had put out a Red Corner Notice against him.
India has an extradition treaty with Belgium.
However, Choksi is expected to seek bail and an immediate release, citing health reasons, as he is suffering from cancer.
Choksi, along with his nephew Nirav Modi-who is in London awaiting extradition-is accused of defrauding Punjab National Bank (PNB) of Rs 13,850 crore.
The case, which shook the Indian banking sector in 2018, involved fraudulent Letters of Undertaking (LoUs) and Foreign Letters of Credit (FLCs), allegedly issued through collusion with bank officials.
Two open-ended arrest warrants issued by a Mumbai court in May 2018 and June 2021 were referenced during Choksi’s arrest, the reports added.
He had fled India on January 2, 2018, initially travelling to the US before settling in Antigua. He was later arrested in Dominica while trying to flee to Cuba.
Dominica deported him back to Antigua despite India making a representation for extradition. He left for Belgium to seek treatment for cancer.
During the investigation, the ED conducted searches at more than 136 locations all over India and seized valuables/jewellery worth Rs. 597.75 crore pertaining to the Gitanjali Group owned by Choksi.
