Belgium Court Approves Mehul C

The Belgium court's recent decision to approve the extradition of Mehul Choksi to India marks a major breakthrough in one of India's largest financial fraud cases. Choksi, a fugitive diamond trader, is at the heart of a sprawling ₹13,000 crore (approximately $950 million) scam involving the Punjab National Bank (PNB). The court ruled that his arrest in Belgium was legal and that the crimes he is charged with — including cheating, criminal conspiracy, corruption, and destruction of evidence — also qualify as offences under Belgian law. This important ruling satisfies the dual-criminality principle that underpins extradition treaties.

Mehul Choksi, the former head of Gitanjali Gems, along with his nephew Nirav Modi, allegedly defrauded PNB by securing fraudulent Letters of Undertaking (LoUs) and Letters of Credit, which allowed them to bypass banking regulations and siphon off vast sums of money intended for import payments. Between 2011 and 2017, Choksi and Modi's companies obtained over 1,200 LoUs, most of which were fraudulent, enabling loans from overseas branches of Indian banks without proper securities or collaterals.

This sophisticated scam involved collusion with corrupt bank officials and exploitation of weaknesses in the bank’s systems, including the SWIFT messaging network, keeping transactions off the official bank ledgers. The fraud went undetected for several years despite routine audits and reports until it was uncovered in 2018, shaking India’s banking sector and financial regulations worldwide.

After the scam was exposed, Nirav Modi fled to the UK, where he remains in custody pending extradition, while Mehul Choksi escaped India and eventually obtained Antiguan citizenship. He was later arrested in Belgium in April 2025 following India’s extradition request. The Belgian court confirmed that Choksi’s Indian citizenship claims were unsubstantiated, and India presented detailed assurances about his humane detention at Mumbai’s Arthur Road Jail, which meets European standards for prisoner care, including medical facilities, proper food, and communication rights.

Choksi now has 15 days to file an appeal against the extradition order in Belgium’s Supreme Court. If his appeal is denied or not filed, India will proceed with arrangements to bring him home to face trial on multiple charges of fraud, money laundering, and criminal conspiracy. Indian officials view this court decision as a landmark victory in the fight against high-profile economic crimes and a testament to international cooperation in upholding justice.

This case highlights critical issues in banking oversight, international law, and the challenges of prosecuting cross-border financial fraud. It reassures victims and the public that individuals responsible for massive financial crimes cannot hide behind borders. With Choksi’s potential return to India, further legal proceedings will aim to recover assets and enforce accountability.

With inputs from agencies

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