Setback To Mehul Choksi In Belgium, Court Rejects Bail Plea Of Key Accused In PNB Loan 'Fraud' Case

(MENAFN- Live Mint) In a setback to fugitive diamantaire Mehul Choksi , Belgium court on Tuesday rejected his bail plea.

The diamantaire was arrested by Belgium authorities in Antwerp following an extradition request by Indian probe agencies.

He is wanted by Indian probe agencies in connection with a ₹13,500-crore Punjab National Bank (PNB) loan fraud case.

A three-judge bench heard the arguments before ruling against granting bail, reported ANI.

Last week, India said it is working closely with Belgium for extradition of fugitive diamantaire Mehul Choksi.

Also Read | Mehul Choksi arrested in Belgium 'based' on India's extradition request: Govt

"Based on our extradition request, he was arrested. We are working closely with the Belgium side on his extradition so that he can face trial in the country," External Affairs Ministry spokesperson Randhir Jaiswal said.

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.

Also Read | Is Mehul Choksi officially a fugitive? All you need to know

Choksi, Nirav Modi, their family members and employees, bank officials and others were booked by the CBI and the ED in 2018 for perpetrating the alleged loan fraud at the Brady House branch of the Punjab National Bank (PNB) in Mumbai.

It was alleged that Choksi, his firm Gitanjali Gems and others "committed the offence of cheating against PNB in connivance with certain bank officials by fraudulently getting the LoUs (letters of undertaking) issued and got the FLCs (foreign letter of credit) enhanced without following prescribed procedure and caused a wrongful loss to the bank".

Also Read | Mehul Choksi Extradition: How soon can the 'fugitive' be brought to India?

The CBI has filed at least two chargesheets against him in this case while the ED has filed three such prosecution complaints.

Nirav Modi, declared a fugitive economic offender, has been lodged in a London jail since he was held by the authorities there in 2019 on the basis of a legal request made by the ED and the CBI in this case. He is contesting extradition to India.

- With agency inputs.

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