New Delhi: Absconding diamantaire Mehul Choksi has been arrested by Belgium authorities following an extradition request by Indian probe agencies for his involvement in the ₹13,000 crore PNB loan “fraud” case.

The Belgian Police took custody of the second “prime suspect” in this case, after Choksi’s nephew diamantaire Nirav Modi, on April 12 in Antwerp based on an extradition request moved by the Central Bureau of Investigation (CBI) and the Enforcement Directorate (ED), official sources said on Monday. Choksi (65), who had been staying in Antigua since 2018 after fleeing India, will challenge his arrest and possible extradition. His nephew and diamantaire Nirav Modi, who is the prime accused in the case, is also facing extradition from the United Kingdom. Choksi was located in Belgium last year.

Indian agencies have been pursuing the extradition route after Interpol had removed the Red Corner Notice against Choksi in November 2022. The CBI had opposed the Interpol move.

With Choksi’s presence in Belgium established last year, Indian agencies shared two open-ended arrest warrants issued by a special court in Mumbai in 2018 and 2021 with Belgium as part of the extradition request.

Choksi's lawyer Vijay Agarwal said, “At the moment, he is in prison… the procedure is not to apply for bail but file an appeal. During that appeal, a request is made that he should not be kept in detention and he should be permitted to defend himself and oppose the extradition request while not being in custody.” Agarwal said grounds for the appeal would be that Choksi is “not a flight risk, is extremely sick and undergoing treatment for cancer”. Choksi would also argue that this is a “political case and the human condition (in Indian prisons) was not good”.

Law Minister Arjun Ram Meghwal said Choksi’s arrest was a “victory of Indian diplomacy” under the Modi government. Minister of State for Finance Pankaj Chaudhary said the government has “zero tolerance” towards fugitives like Choksi and said the government would work to bring him

back soon.