NEW DELHI: A Belgian court of appeal has once again rejected the bail plea of fugitive diamond trader Mehul Choksi , who is wanted in India in connection with the Rs 6,300-crore Punjab National Bank (PNB) fraud case. The decision comes just days before his extradition hearing scheduled in mid-September.
Officials said the court turned down Choksi’s request, citing strong arguments from the Central Bureau of Investigation (CBI), which warned that he had previously fled multiple jurisdictions to avoid legal proceedings and could abscond again if released.
Choksi, the 66-year-old owner of Gitanjali Group, was arrested in Belgium in April following an extradition request from the CBI. His earlier bail application had already been rejected by Belgium’s Court of Cassation. In his latest plea filed on August 22, Choksi had offered to remain under house arrest with surveillance, but the appeal court dismissed it this week.
The CBI is assisting Belgian prosecutors with case files, evidence and legal arguments, and has also engaged a European law firm to strengthen the extradition case.
Indian agencies have shared two open-ended arrest warrants, issued by a special court in Mumbai in 2018 and 2021, as part of the request.
Choksi, along with his nephew Nirav Modi , is accused of masterminding the Rs 13,000-crore PNB fraud through fraudulent Letters of Undertaking (LoUs) and Foreign Letters of Credit (FLCs), allegedly issued by some PNB officials at the bank’s Brady House branch in Mumbai. These instruments enabled Choksi’s companies to obtain loans from several overseas banks without proper approvals or security.
When Choksi’s firms failed to repay, PNB had to cover the liability, paying over Rs 6,344 crore including interest to the foreign banks involved.
While Choksi is facing extradition proceedings in Belgium, Nirav Modi has been in custody in London since 2019 and is contesting his extradition to India. Both face multiple charges under the Indian Penal Code, the Prevention of Corruption Act and international conventions on organized crime and corruption.
Officials said the court turned down Choksi’s request, citing strong arguments from the Central Bureau of Investigation (CBI), which warned that he had previously fled multiple jurisdictions to avoid legal proceedings and could abscond again if released.
Choksi, the 66-year-old owner of Gitanjali Group, was arrested in Belgium in April following an extradition request from the CBI. His earlier bail application had already been rejected by Belgium’s Court of Cassation. In his latest plea filed on August 22, Choksi had offered to remain under house arrest with surveillance, but the appeal court dismissed it this week.
The CBI is assisting Belgian prosecutors with case files, evidence and legal arguments, and has also engaged a European law firm to strengthen the extradition case.
Indian agencies have shared two open-ended arrest warrants, issued by a special court in Mumbai in 2018 and 2021, as part of the request.
Choksi, along with his nephew Nirav Modi , is accused of masterminding the Rs 13,000-crore PNB fraud through fraudulent Letters of Undertaking (LoUs) and Foreign Letters of Credit (FLCs), allegedly issued by some PNB officials at the bank’s Brady House branch in Mumbai. These instruments enabled Choksi’s companies to obtain loans from several overseas banks without proper approvals or security.
When Choksi’s firms failed to repay, PNB had to cover the liability, paying over Rs 6,344 crore including interest to the foreign banks involved.
While Choksi is facing extradition proceedings in Belgium, Nirav Modi has been in custody in London since 2019 and is contesting his extradition to India. Both face multiple charges under the Indian Penal Code, the Prevention of Corruption Act and international conventions on organized crime and corruption.
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