Belgian Court Rejects Mehul Choksi’s Bail Plea
Fugitive Faces Extradition in PNB Fraud Case
A Belgian court of appeal has rejected the bail plea of fugitive diamond trader Mehul Choksi, wanted in India for his role in a ₹13,500-crore Punjab National Bank (PNB) fraud, officials confirmed on Saturday. The decision, made days before a mid-September extradition hearing, cites Choksi’s history of evading justice across jurisdictions, reinforcing the Central Bureau of Investigation’s (CBI) argument that the 66-year-old Gitanjali Group owner might flee if released.
Choksi, arrested in Antwerp on April 11, 2025, following India’s extradition request, had his initial bail plea denied by Belgium’s Court of Cassation in July. His latest application on August 22, offering house arrest with surveillance, was dismissed on August 26, with the court unconvinced by claims of his medical condition, including alleged cancer treatment. The CBI, backed by a European law firm, provided evidence of Choksi’s prior escapes, notably from India to Antigua and Barbuda in 2018 and a brief detention in Dominica in 2021 for illegal entry.
The CBI and Enforcement Directorate (ED) accuse Choksi and his nephew Nirav Modi of orchestrating the fraud by securing 165 Letters of Undertaking (LoUs) and 58 Foreign Letters of Credit (FLCs) from PNB’s Brady House branch in Mumbai during March-April 2017, without sanctioned limits or entries in the bank’s system. This led to PNB paying ₹6,344.97 crore (approximately $965.18 million) to overseas banks like SBI Mauritius, Axis Bank Hong Kong, and Bank of India Antwerp after Choksi’s firms defaulted.
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Choksi faces charges under Indian Penal Code sections for criminal conspiracy, cheating, and falsification of accounts, alongside Prevention of Corruption Act provisions, all recognized as crimes in Belgium under the dual criminality clause of the India-Belgium extradition treaty. The CBI has invoked the United Nations Convention against Transnational Organized Crime (UNTOC) and the United Nations Convention against Corruption (UNCAC), supported by two Mumbai court arrest warrants from 2018 and 2021.
Choksi’s lawyer, Vijay Aggarwal, plans to appeal, citing his client’s health and alleging the case is politically motivated, claims previously used to contest extradition from Antigua. A 2021 Dominican court order, issued in the CBI’s presence, restricted Choksi’s travel, which Aggarwal argues places him in India’s “constructive custody,” challenging the ED’s fugitive economic offender (FEO) plea pending in Mumbai. The ED has seized assets worth ₹2,565.90 crore, and a special PMLA court is yet to rule on Choksi’s FEO status, which could lead to property confiscation.
The CBI’s team visited Brussels to share case details, strengthening Belgium’s prosecution. Nirav Modi, also a fugitive economic offender, remains in a London jail since 2019, fighting extradition. With India’s diplomatic push, including External Affairs Ministry coordination, the upcoming hearing could determine whether Choksi, who obtained Antiguan citizenship in 2017, faces trial in India for one of the country’s largest banking scams.
