A Belgian court on Friday ordered the extradition of fugitive Mehul Choksi to India, news agency PTI reported citing officials. Choksi faces charges related to the massive 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 told news agency PTI.Officials stated that the order marks a significant validation of India’s efforts to secure Mehul Choksi’s extradition, although he still has the option to appeal the decision in a higher Belgian court. Prosecutors argued before the court that Choksi poses a flight risk and should not be released from custody, the officials told PTI. Choksi, who relocated to Belgium in 2023 after leaving Antigua and Barbuda, was arrested there in April following India’s extradition request. He and his nephew Nirav Modi are accused of defrauding the bank of over Rs 13,000 crore.
What is the case against Mehul Choksi?
Mehul Choksi, stands accused in one of India’s largest banking frauds, the Punjab National Bank (PNB) scam involving over Rs 13,000 crore. Along with his nephew Nirav Modi, Choksi allegedly orchestrated fraudulent Letters of Undertaking (LoUs) and Foreign Letters of Credit (FLCs) at PNB’s Brady House branch in Mumbai during 2017. These LoUs were guarantees issued by the bank to foreign lenders without any sanctioned limits or cash margins, deliberately bypassing the bank’s central system to avoid detection.Authorities allege that loans were obtained from overseas banks across locations including Mauritius, Hong Kong, Antwerp, and Frankfurt based on these fraudulent guarantees. When the companies failed to repay, PNB was forced to pay over Rs 6,300 crore, including interest, to these foreign banks.
