New Delhi: The Belgian police have arrested diamond merchant Mehul Choksi, one of the two prime accused in the $2-billion Punjab National Bank (PNB) fraud, people in the know told ET. Choksi was arrested on Saturday at the behest of the Central Bureau of Investigation ( CBI) and is still in jail, they said.
Indian investigating agencies sent a formal communique to Belgian authorities, seeking Choksi's arrest after he had been spotted in that country, as first reported by ET on September 21 last year. CBI had sought his immediate detention. The Belgian authorities sought a formal extradition request from Indian authorities.
While placing Choksi under arrest, the Belgian police referred to two open-ended arrest warrants issued against him by a Mumbai court. These were dated May 23, 2018, and June 15, 2021, people in the know told ET.
Choksi, otherwise a resident of Antigua, is said to have come to Europe for medical treatment.
He's likely to seek bail and an immediate release due to ill health and other reasons, said the people cited above. Indian agencies will oppose Choksi's bail and seek his extradition.
CBI and the Directorate of Enforcement ( ED) have charged Choksi and his nephew Nirav Modi with corruption and money laundering for allegedly defrauding PNB of ₹13,400 crore in collusion with bank officials.
ED Restoring Assets
As reported by ET on February 28, Choksi had told a Mumbai court that he has blood cancer and is due to start radiation therapy, so can't travel to India to stand trial. Then, Choksi filed an application in a special court in Belgium in February claiming he has been suffering from chronic lymphocytic leukaemia and lymphoma since 2023.
ET reported on January 1 that ED had zeroed in on the alleged proceeds of crime totalling nearly ₹80 crore held abroad by Choksi. In a bid to return the money to the victims of the alleged fraud, the federal agency has reached out to several countries, asking them to monetise the assets and transfer the proceeds to India.
The agency has identified five properties owned by Choksi and his entities in Thailand, Dubai, Japan and the US.
In December, the ED said it had started restoring assets worth over ₹2,500 crore as part of its probe against Choksi. "In pursuance to the order, the process of handing over of assets has been initiated and properties worth more than ₹125 crore have been handed over to the liquidator of Gitanjali Gems," it said.
Indian investigating agencies sent a formal communique to Belgian authorities, seeking Choksi's arrest after he had been spotted in that country, as first reported by ET on September 21 last year. CBI had sought his immediate detention. The Belgian authorities sought a formal extradition request from Indian authorities.
While placing Choksi under arrest, the Belgian police referred to two open-ended arrest warrants issued against him by a Mumbai court. These were dated May 23, 2018, and June 15, 2021, people in the know told ET.
Choksi, otherwise a resident of Antigua, is said to have come to Europe for medical treatment.
He's likely to seek bail and an immediate release due to ill health and other reasons, said the people cited above. Indian agencies will oppose Choksi's bail and seek his extradition.
CBI and the Directorate of Enforcement ( ED) have charged Choksi and his nephew Nirav Modi with corruption and money laundering for allegedly defrauding PNB of ₹13,400 crore in collusion with bank officials.
ED Restoring Assets
As reported by ET on February 28, Choksi had told a Mumbai court that he has blood cancer and is due to start radiation therapy, so can't travel to India to stand trial. Then, Choksi filed an application in a special court in Belgium in February claiming he has been suffering from chronic lymphocytic leukaemia and lymphoma since 2023.
ET reported on January 1 that ED had zeroed in on the alleged proceeds of crime totalling nearly ₹80 crore held abroad by Choksi. In a bid to return the money to the victims of the alleged fraud, the federal agency has reached out to several countries, asking them to monetise the assets and transfer the proceeds to India.
The agency has identified five properties owned by Choksi and his entities in Thailand, Dubai, Japan and the US.
In December, the ED said it had started restoring assets worth over ₹2,500 crore as part of its probe against Choksi. "In pursuance to the order, the process of handing over of assets has been initiated and properties worth more than ₹125 crore have been handed over to the liquidator of Gitanjali Gems," it said.
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