Working closely with Belgium for Mehul Choksi's extradition, says MEA

India on Thursday said it is working closely with Belgium for the extradition of fugitive diamantaire Mehul Choksi.

Choksi was arrested in Belgium's Antwerp on Saturday based on a formal request from the Indian government.

"Based on our extradition request, he was arrested. We are working closely with the Belgium side on his extradition so that he can face trial in the country," external affairs ministry spokesperson Randhir Jaiswal said.

Choksi is wanted by Indian probe agencies in connection with a Rs 13,500-crore bank loan fraud case.

The fugitive diamantaire and his nephew Nirav Modi allegedly siphoned off Rs 13,500 crore of public money from the state-run Punjab National Bank using fraudulent letters of undertaking.

Nirav Modi, lodged in a London jail, is contesting his extradition to India after repeated denial of his bail by courts.

In May 2021, Choksi went missing from Antigua but was traced and returned to it later.

It was alleged that Choksi, his firm Gitanjali Gems and others "committed the offence of cheating against PNB in connivance with certain bank officials by fraudulently getting the LoUs (letters of undertaking) issued and got the FLCs (foreign letter of credit) enhanced without following prescribed procedure and caused a wrongful loss to the bank".

The CBI has filed at least two chargesheets against him in this case while the ED has filed three such prosecution complaints.

CBI seeks NBW against Choksi in Canara Bank case

Days after diamantaire Mehul Choksi was arrested in Belgium, the CBI approached a court in New Delhi seeking a Non-Bailable Warrant against him in another case where he and others are accused of cheating a Canara Bank-led consortium of Rs 55.27 crore.

Choksi, a prime accused in the alleged multi-million dollar Punjab National Bank fraud, was arrested in Belgium on April 12 following an extradition request by Indian probe agencies.

The Central Bureau of Investigation, probing the Canara bank cheating case, approached the special CBI court here on Wednesday seeking an NBW against him.

However, judge VP Desai sent the matter to a magistrate's court, saying his court had no jurisdiction.

The judge cited a Supreme Court judgement which states that for a special CBI court to try a case under the Prevention of Corruption (PC) Act, there must be alleged involvement of a public servant.

In the present case, the charge sheet was filed only against private persons for offences under Indian Penal Code sections 120 B(criminal conspiracy) and 420 (cheating).

Hence, the PC Act did not come into the picture and the case should go to a magistrate, the judge said.

The entire CBI case including the application for NBW was transferred to an Additional Metropolitan Magistrate for its final disposal.

The NBW application should be decided forthwith, the special court said.

As per the CBI case, Canara Bank and the Bank of Maharashtra had sanctioned Rs 30 crore and Rs 25 crore, respectively, as working capital facilities under consortium agreement to Bezel Jewellery.

The loan was for the manufacturing and sale of gold and diamond-studded jewellery, but the company did not route any of the business transactions through the account to hide diversion of funds, the CBI claimed.

It did not repay the loan, causing a loss of Rs 55.27 crore to the consortium, the agency alleged.