Source: Indian Express  

Introduction 

Mehul Choksi, a 65-year-old fugitive diamond trader, has been arrested in Belgium following an extradition request from India. Mehul was accused in the Rs 13,500 crore Punjab National Bank (PNB) loan fraud case, had been living in Antigua and Barbuda as a citizen since 2018 before reportedly moving to Belgium last year for cancer treatment. The arrest marks a significant development in India's ongoing efforts to bring back individuals accused of major financial crimes who have fled the country to avoid prosecution. 

What was the Background of the Case ? 

• Mehul Choksi, coming from a family of diamantaires, expanded his family business by opening luxurious jewelry stores across India and abroad under his Gitanjali Group.  
• Along with his nephew Nirav Modi, Mehul invested heavily in marketing and advertising, securing international celebrities like Kate Winslet and Rosie Huntington-Whiteley as brand ambassadors. 
  • However, much of this expansion was funded through loans from Punjab National Bank.  
• According to investigations by the Central Bureau of Investigation (CBI) and Enforcement Directorate (ED), between 2014 and 2017, instead of repaying their loans, Mehul and Nirav fraudulently obtained Letters of Understanding (LoUs) from the Brady House branch of PNB in Mumbai with the collusion of certain bank officials.  
• These LoUs were used to secure credit from foreign banks to fund their business operations and accumulate personal assets.  
• The LoUs, which were meant to be repaid within three months, were merely renewed with interest by complicit bank officials, creating a continuous flow of funds while the debt accumulated.  
• By the time PNB discovered these irregularities and approached the CBI, both Mehul and Nirav had fled India, leaving the bank with losses exceeding Rs 13,500 crore. Choksi alone stands accused of defrauding the bank of more than Rs 6,000 crore. 

What were the Recent Developments in the Case ? 

• Mehul Choksi has been arrested in Belgium following an extradition request from India on  13th April, 2025, in Antwerp, Belgium. 
• Mehul’s legal team is filing an appeal against the arrest; they will seek bail. 
  • The bail application will primarily cite Choksi's ongoing cancer treatment as grounds for release. 
• Mehul's wife, Preeti Choksi, is a Belgian citizen, and Mehul has allegedly obtained an 'F Card' to stay in the country. 
• Teams from both Indian agencies are expected to visit Belgium to prepare the extradition case. 
• In 2020, India and Belgium signed a Mutual Legal Assistance Treaty to improve cooperation on fugitive cases. 
• The Interpol withdrew its Red Corner Notice against Mehul in 2023, citing concerns about his "abduction" from Antigua in 2021. 

What Legal and Diplomatic Hurdles Could India Face in Extraditing Mehul Choksi from Belgium? 

• Mehul's legal team will likely use the controversial 2021 Dominica incident, where he was allegedly kidnapped by Indian agents, to argue against extradition. 
  • Mehul's lawyers are expected to raise concerns about potential human rights violations and poor prison conditions in India. 
  • Choksi's Antiguan citizenship significantly complicates the legal process for extradition from Belgium. 
• Extradition processes in European countries, including Belgium, are typically lengthy and complex legal procedures. 
• The extradition treaty with Belgium prohibits extradition for politically motivated cases, which Choksi's lawyers might claim applies to him. 
• If India fails to present sufficient evidence of culpability within two months, Belgian law requires Mehul's release. 
• Based on India's experience with extradition cases in Europe, particularly those of Nirav Modi and Vijay Mallya from the UK, the process could take several years. 
• Belgium's judicial system may scrutinize India's evidence and legal processes before approving extradition. 

What are the Legal Provisions in Relation to Extradition? 

• Extradition in India is governed by the Extradition Act, 1962, which establishes extra-territorial jurisdiction and applies to both bringing fugitives to India and sending them from India to foreign countries. 
• India currently maintains extradition treaties with 48 countries and arrangements with 12 others, creating bilateral frameworks for the surrender of individuals accused or convicted of crimes. 
• The Act defines extraditable offenses based on treaty status—for treaty states, these are specified in the agreement, while for non-treaty states, they must be punishable by at least one year imprisonment under either country's laws. 
• Three fundamental principles govern extradition: Double Criminality (the act must be an offense in both countries), Specialty (prosecution limited to the specific extradition crime), and Political Exception (refusal if the request is politically motivated). 
• For Belgium specifically, a new treaty has been approved to replace the colonial-era agreement, covering financial crimes like those Choksi is accused of while maintaining protections against politically motivated prosecutions. 
• These legal provisions create both pathways and barriers in cases like Mehul Choksi's, where his financial crimes qualify for extradition, but his legal team may invoke exceptions based on political persecution claims or health conditions. 

What is the Extradition Process to India from Belgium? 

• The extradition process begins with India making a formal request to Belgian authorities for Mehul Choksi's extradition, citing the bilateral treaty and providing details of his alleged crimes. 
• Belgian authorities will then arrest the fugitive (as has happened with Choksi) and present him before a Belgian court where he has the right to contest the extradition request. 
• India must submit all required evidence of Choksi's culpability within two months of his arrest, or he will be released according to treaty provisions. 
• Teams from CBI and ED will travel to Belgium to work with local authorities to prepare the case according to Belgian legal requirements. 
• The Belgian court will assess whether the case meets the dual criminality requirement, whether the offense is extraditable, and whether any exceptions (like political persecution or health concerns) apply. 
• If the court approves extradition, Choksi may appeal through multiple levels of the Belgian judicial system, potentially extending the process for years. 
• Once all legal remedies are exhausted and if extradition is approved, Belgian authorities will surrender Choksi to Indian officials who will escort him back to India. 
• Upon arrival in India, Choksi would be formally arrested and presented before a designated court to face trial for the PNB fraud case. 
• Throughout this process, the Mutual Legal Assistance Treaty signed in 2020 facilitates sharing of evidence and legal cooperation between Indian and Belgian authorities. 
• The new extradition treaty, once fully implemented, will replace the 1901 agreement and provide updated frameworks specifically addressing financial crimes like those Choksi is accused of committing. 

Conclusion 

In conclusion, while the arrest of Mehul Choksi constitutes a significant diplomatic development, the path to his extradition is fraught with legal complexities. Anticipated defenses based on health, citizenship, and alleged procedural improprieties may prolong the proceedings. Consequently, despite India’s demonstrated commitment to prosecuting economic offenders, the timeline for securing Choksi’s extradition remains indeterminate.