The net tightens on India’s most-wanted fugitives. Just after the high-profile extradition of Tahawwur Rana, another name is back in the headlines—Mehul Choksi. The 65-year-old fugitive diamond tycoon, accused in a staggering Rs.13,500 Crore PNB scam, was finally arrested in Belgium on March 12. Choksi’s hide-and-seek on island after island, dogging Indian authorities, ended after 8 years.
As India pushes for his extradition, the question looms: Will Choksi finally be brought home to face justice?
Defrauding PNB of Rs.13500 Crore: Uncovering the ‘gone’ money
In 2018, Punjab National Bank reported a major scam implicating high-profile individuals, including Mehul Choksi and his nephew, billionaire jeweler Nirav Modi.
Nirav Modi and Mehul Choksi have been on the ‘wanted’ list since the scam surfaced, jolting the nation. The two reportedly manipulated the banking system to obtain fraudulent Letters of Undertaking, robbing PNB of over Rs.13,500 Crore.
The fraudulent LoUs are the heart of the fraud; they are bank guarantees granted to facilitate short-term credit from overseas branches of Indian Banks. Nirav Modi started acquiring LoUs from PNB in March 2011 in Mumbai. The scam was under the hood for years without a hint.
Choksi's awaited extradition
Punjab National Bank filed a scam complaint with the Central Bureau of Investigation and reported it to the RBI on January 29, 2018. An FIR was officially registered on February 13, 2018, against the Nirav Modi Group, Gitanjali Group, and Chandri Paper & Allied Products PVT Ltd.
Choksi evaded the law and fled the country on January 2, 2018. He settled in Antigua with his wife. Choksi recently flew to Belgium to receive treatment for Cancer, where he was caught and detained.
Choksi’s plans to flee to Switzerland
The Enforcement Directorate stated that Choksi misled the Belgian government by naming medical reasons supported by counterfeit documents. According to reports, his claims are currently strong and can help him flee to Switzerland for Cancer treatment.
Additionally, he applied for and obtained an F residency card. He has solid plans to upgrade to an F+ residency; retrieving him will be more than difficult if that happens.
The Belgian government suspended the status at India's request, leaving some hope for the extradition. More details of the story will be up soon. Follow True Scoop for more news and updates.