In a significant setback for fugitive diamantaire Mehul Choksi, a Belgian court has rejected his bail petition ahead of his extradition hearing. Choksi is wanted in India for his alleged involvement in a massive bank fraud exceeding ₹13,900 crore (approximately $1.7 billion USD). The court's decision comes as Indian authorities intensify their efforts to bring him back to face justice.

The Belgian court's decision to deny bail was influenced by the Central Bureau of Investigation's (CBI) strong arguments, which highlighted Choksi's history of evading legal proceedings and his potential to flee to another country if granted bail. The CBI provided compelling reasons to the Belgian authorities, emphasizing that Choksi had previously escaped from multiple jurisdictions to avoid facing the law. This history of flight risk weighed heavily on the court's decision.

Choksi, who owns the Gitanjali Group, had submitted a fresh bail application on August 22, proposing house arrest with home surveillance. However, the court rejected this appeal earlier this week. His extradition case is scheduled to be heard in a Belgian court in mid-September. The CBI is expected to assist the Belgian prosecution in presenting a robust case to ensure his extradition to India, where he will stand trial for the charges against him.

Mehul Choksi and his nephew, Nirav Modi, are the central figures in the Punjab National Bank (PNB) fraud case. They are accused of orchestrating a ₹13,000 crore fraud through fraudulent Letters of Undertaking in collusion with certain bank officials at the Brady House branch in Mumbai.

Choksi's history of evading the law is extensive. In January 2018, he fled to the United States and then to Antigua, where he had obtained citizenship a year prior. When he vanished from Antigua in 2021 and was discovered in Dominica while attempting to escape to Cuba by boat, it further solidified his image as a flight risk. Five more cases were registered against him in 2022. Subsequently, he relocated to Belgium for the second time with his wife, Preeti Choksi, a Belgian citizen, after obtaining an 'F Residency Card'. He was granted residency in Belgium in November 2023 and was arrested there on April 11 this year.

In April, following Choksi's arrest in Belgium based on an extradition request from the CBI, his Indian counsel, Vijay Aggarwal, announced plans to appeal the court's decision, citing Choksi's deteriorating health and ongoing cancer treatment. Aggarwal, who was present in Antwerp ahead of the bail hearing and visited Choksi in custody during April, stated that they would stress his medical condition and argue that he poses no flight risk.

Aggarwal has also outlined the defense's strategy to oppose extradition on two primary grounds: the politically motivated nature of the case and concerns over Choksi's medical treatment in India. He argued that extradition could violate Choksi's human rights due to inadequate healthcare and potential political harassment, further emphasizing that Choksi has not been officially declared a fugitive and has cooperated with Indian investigative agencies.

Nirav Modi, also implicated in the PNB fraud and declared a fugitive economic offender, has been held in a London jail since 2019, following a legal request by the Enforcement Directorate (ED) and the CBI. He is currently contesting his extradition to India.

As the extradition hearing approaches in mid-September, the focus remains on the collaborative efforts between Indian and Belgian authorities to ensure that Mehul Choksi is brought back to India to face trial for his alleged role in the PNB fraud.