How The PNB Case Probe Put Diamantaire Mehul Choksi In The Rough | Exclusive
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Mehul Choksi arrested in Belgium: The PMLA probe into the PNB scam was initiated on the basis of an FIR registered by the CBI in 2018 against Mehul Choksi and others for offences of criminal conspiracy, cheating and corruption
Fugitive Indian businessman Mehul Choksi. (File photo/AFP)
From the first information report in 2018 to the extradition request in 2025, Indian agencies carried out an extensive probe into the Rs 13,000-crore PNB scam involving absconding diamantaire Mehul Choksi , according to the Enforcement Directorate’s status report exclusively accessed by CNN-News18.
Choksi was arrested in Belgium on April 12. The Belgian Police took his custody in Antwerp based on an extradition request moved by the Central Bureau of Investigation (CBI) and the Enforcement Directorate (ED), official sources said on Monday.
Choksi, 65, was located in Belgium last year after he reached there on the grounds of getting medical treatment, sometime in November 2023. He had been staying in Antigua after leaving India in 2018 and had taken citizenship of the Caribbean country even as his Indian citizenship is stated to be valid.
FIRST FIR WAS FILED IN 2018
From 2014 to 2017, Choksi through his beneficially owned companies namely M/s. Gitanjali Gems Ltd., M/s Gili India Ltd. & M/s Nakshatra Brands Ltd, in connivance with bank officials of Punjab National Bank (PNB), got fraudulently issued Letters of Undertaking (LOUs) and Foreign Letters of Credit (FLCs) aggregating to USD 952.76 million equivalent to Rs 6,097.63 crore from PNB, Mumbai.
The Prevention of Money Laundering Act (PMLA) investigation was initiated on the basis of a First Information Report (FIR) registered by the CBI Mumbai on February 15, 2018 against Choksi and others for offences of criminal conspiracy, cheating, corruption etc. which resulted in wrongful loss to the PNB.
SEARCHES TO EXTRADITION REQUEST
After registration of PMLA case in 2018, searches were conducted all over India, resulting in seizures of valuables/jewelleries worth Rs 598 crore.
Choksi was summoned thrice to appear before the investigating authorities, but he did not appear before ED. An Open Ended Non Bailable Warrant (NBW) having OW. No. 20525/18 dated 08.08.2018 was issued against Choksi by the Special PMLA Court, Mumbai. His passport was revoked on ED’s request.
A red-corner notice was issued against Choksi, Rakesh Gajera, Sunil Varma, Jayeshkumar Indravadan Shah and Nehal Modi (all are accused in the case). Look out notices against Choksi and his close associates were issued.
A prosecution complaint (PMLA Spl. Case No. 09/2018 dated 28.06.2018) was filed against Choksi and 13 others before the special PMLA court, Mumbai. Further two supplementary PCs (No. 1105/2020 dated 07.04.2020 and No: 410/2022 dated 14.03.2022) were filed against Choksi and five others in the case.
An application dated 10.07.2018, requesting to declare Choksi a Fugitive Economic Offender (FEO) and for confiscation of his properties already attached/seized worth Rs 2,345 crore approximately was filed before a designated court in Mumbai under FEOA, 2018.
Extradition request (dated 09.08.2018) for Choksi was sent to the Government of Antigua and Barbuda. Choksi, while fleeing out of Antigua and illegally entering Republic of Dominica, was arrested by authorities in Dominica.
In July 2024, information was received from NCB-Brussels that Choksi was undergoing some medical treatment in Belgium. Based on that information, several documents related to the case were shared with NCB-Brussels. On deliberation and consultation with officials of CBI (NCB) & MEA, an extradition request dated 25.10.2024, as per the desired model of Belgium Authorities, was sent to the Government of Kingdom of Belgium.