AA Edit | Will Choksi Face the Law Soon?
India pushes for extradition of fugitive in Rs 14,000 crore bank fraud.;
The arrest of Mehul Chinubhai Choksi, a fugitive businessman wanted in the Rs 14,000 crore Punjab National Bank (PNB) scam in Belgium, marks a crucial turn in India’s efforts to bring him to justice. Choksi, who fled India in 2018, faces charges of criminal conspiracy,
cheating, breach of trust and money laundering. His arrest opens a critical avenue for the Indian government to intensify extradition efforts through legal and diplomatic channels.
The PNB scam, one of India's largest banking frauds in the last 10 years, was orchestrated by Choksi and his nephew Nirav Modi. Using fraudulent Letters of Undertaking issued by PNB officials, the duo raised loans and siphoned off funds to overseas accounts between 2011 and 2017. As Choksi exploited SWIFT messaging protocols, the scam prompted several sweeping reforms in internal controls and strengthened oversight mechanisms in public sector banks.
After the CBI named Choksi, he initially fled to Antigua and Barbuda, a small country in the Caribbean region, where he gained citizenship under its investment programme and remained a fugitive from Indian law ever since. Though he was arrested in Belgium, Indian officials will have to navigate Europe’s complex extradition proceedings.
Former liquor baron Vijay Mallya was arrested in London in 2017, and Nirav Modi apprehended in October 2019. However, both have challenged the extradition process and managed to stall their return so far. If India aims to close these legacy scams, its officials must redouble their efforts to convince the court of the gravity of the offences.
The Ministry of External Affairs and the Enforcement Directorate must present a watertight case that aligns with European human rights standards while firmly establishing Choksi’s role in economic offences. India’s success in the Nirav Modi case could serve as a precedent for pursuing Choksi’s extradition. This arrest is, therefore, not the end of the road, but it may finally be the beginning of Choksi’s comeuppance.
