In a major boost to the efforts to bring back fugitive diamantaire Mehul Choksi, a court in Antwerp, Belgium, on Friday rejected his appeal against extradition, bringing India closer to secure his return, officials said.
In September, the Court of Appeals in Antwerp heard the appeal of Choksi, who was arrested in that country on April 11 on the basis of extradition request sent by the CBI, they said.
"The Court of Appeals in Antwerp, Belgium, issued a preliminary judgment today, rejecting Mehul Choksi's appeal against extradition. This is a win and the first step towards his extradition. He may now appeal against this order before the Belgian Supreme Court in the next 15 days," an official said on condition of anonymity.
The court order gave a major jolt to the fugitive businessman wanted for a Rs 13,000 crore bank fraud in the Punjab National Bank orchestrated in collusion with his nephew Nirav Modi, who is also facing extradition proceedings and is presently lodged in a London prison.
Of the total Rs 13,000 crore, Choksi alone siphoned off Rs 6,400 crore, the CBI alleged in its chargesheet.
The Antwerp court held that Choksi's arrest by the Belgian authorities on India's request was valid, officials in the know of the development said.
The order has come as a strong validation for India's case seeking his extradition, with Choksi having the option of appealing against the decision in the Supreme Court in Belgium, they said.
"This is the first success for India in the ongoing extradition proceedings against Mehul Choksi in Belgium," an official said.
Choksi (66) remains at a prison in Antwerp since his arrest in April, with his multiple bail petitions rejected after they were effectively countered by the Belgium Prosecution, which was aided by the CBI since April this year.
"The order has come in our favour. The court has termed his arrest by the Belgian authorities on India's request valid. The first legal step in getting him extradited is now clear," a senior official said.
Belgian prosecutors were aided by Indian officials from the external affairs ministry and the CBI in putting forth strong arguments on Choksi's alleged role in orchestrating one of the biggest scams in the state-run Punjab National Bank in collusion with his nephew Nirav Modi.
The prosecutors told the court that Choksi remains a flight risk and cannot be released from prison, the officials said.
India has given a number of assurances to Belgium, including Choksi's safety, prison arrangements, human rights, and medical needs, among others.
India has assured the Belgian authorities that if extradited, Choksi would be housed in Barrack No. 12 at the Arthur Road jail in Mumbai, with no chance of overcrowding or solitary confinement, as at least one more economic offender is expected to be housed in his cell.
Daily newspapers in English and local languages, terrestrial TV channels, videoconferencing facilities, and telemedicine services are also available in the prison.
The Union home ministry informed the Belgian authorities through a September 4 communique that the personal living space for each inmate in Barack No. 12 is in line with and fully meets the minimum space requirement of the Committee for the Prevention of Torture and Inhuman or Degrading Treatment or Punishment (CPT) of Europe.
The CBI also invoked United Nations Convention against Transnational Organized Crime (UNTOC) and United Nations Convention against Corruption (UNCAC) in its extradition request.
At least two open-ended arrest warrants, issued by a special court in Mumbai in 2018 and 2021, were shared by the Indian agencies with their Belgian counterparts as part of the extradition request, sources said.
Choksi had fled to Antigua and Barbuda in the Carribbean, days before the scam was detected, where he had taken citizenship.
The sources said he continues to remain an Indian citizen as he has not renounced his Indian citizenship, a mandatory requirement under the law.
After he was stopped in Belgium, the CBI, the external affairs ministry, and the home ministry swung into action to get him extradited to India to face the law.
Choksi and his nephew Nirav Modi are wanted for swindling Rs 13,000 crore through fraudulent letters of undertaking (LoUs) in connivance with some bank officials at PNB's Brady House branch in Mumbai, the officials said.
According to the investigating agencies, officials at PNB's Brady House branch issued 165 LoUs and 58 FLCs during March-April 2017, against which 311 bills were discounted.
These LoUs and FLCs were allegedly issued to Choksi's firms without any sanctioned limit or cash margin and without making entries in PNB's central banking system to evade any scrutiny in case of a default.
LoUs are a guarantee given by a bank on behalf of its client to a foreign bank. If the client does not repay the foreign bank, the liability falls on the guarantor bank.
Based on the LoUs issued by the PNB, money was lent by the SBI, Mauritius; Allahabad Bank, Hong Kong; Axis Bank, Hong Kong; Bank of India, Antwerp; Canara Bank, Manama; and SBI, Frankfurt.
"Since the accused companies did not repay the amount availed against the said fraudulent LoUs and FLCs, PNB made the payment of Rs 6,344.97 crore (USD 965.18 million), including overdue interest, to the overseas banks, which had advanced buyer's credit and discounted the bills against the fraudulent LoUs and FLCs issued by the PNB," the CBI's supplementary chargesheet in the PNB bank fraud case alleged.
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