Will Mehul Choksi be extradited? What the India-Belgium Treaty says

With diamond businessman Mehul Choksi's arrest, all eyes turn to Belgium as India awaits greenlight on extradition

The arrest of fugitive diamond businessman Mehul Choksi in Belgium has turned the spotlight on a crucial question- can India now bring him back to face justice in the ₹13,850 crore Punjab National Bank (PNB) loan fraud case? The 2020 extradition treaty between India and Belgium may hold the answer.

 

Choksi, 65, had been evading Indian authorities since early 2018. After Interpol revoked its Red Notice - a request to global law enforcement to locate and provisionally arrest a person - against him in March 2023, agencies like the Enforcement Directorate (ED) and the Central Bureau of Investigation (CBI) intensified efforts to trace and extradite him.

 

 

Earlier this year, Belgian authorities confirmed that Choksi and his wife, Preeti, had relocated from Antigua and Barbuda to Belgium.

 

India-Belgium extradition treaty of 2020

India and Belgium signed and ratified an extradition treaty in March 2020, which came into force following the exchange of instruments of ratification. The treaty replaces the outdated pre-Independence agreement (1901) between Great Britain and Belgium, which had limited scope, procedural inefficiencies, and outdated laws.

 

The treaty provides a clear legal framework for extraditing individuals accused or convicted of serious crimes, including economic offences like the one Choksi is implicated in.  Also Read: Mehul Choksi arrested in Belgium: What was his alleged role in PNB scam? 

Who can be extradited?

Under the treaty, India and Belgium have agreed to extradite any person found in its territory who is accused or convicted of an offence that is punishable under the laws of both nations by imprisonment of one year or more.

 

These include a broad range of crimes, including those related to taxation and economic fraud. In Choksi's case, charges of fraud, money laundering, criminal breach of trust, and conspiracy are likely to meet the extradition threshold.

 

Can Belgium extradite non-nationals to India?

This is discretionary. Belgium may choose to extradite its nationals, but is not obligated to do so. Choksi, an Antiguan citizen with recent residency in Belgium, may argue that he is no longer an Indian national, which could complicate matters.

 

Are there any grounds for refusal to extradite?

Extradition can be denied if the alleged offence is political, military, discriminatory in motive (based on race, religion, nationality, etc), or time-barred under law.

 

Moreover, if the offence is punishable by death in India, Belgium can demand assurances that capital punishment will not be carried out. The charges against Choksi do not involve capital punishment.

 

What does this mean for Choksi?

While Choksi's arrest has renewed India’s hopes of bringing him back, the extradition process is far from straightforward. His legal team is expected to oppose the move, citing his medical condition as he is reportedly undergoing treatment for blood cancer.

 

While India has a strong case, Belgium’s discretionary power over extraditing non-nationals and the possibility of lengthy legal proceedings mean that the process may take time.

 

Additionally, due to his health conditions, Choksi may need medical clearance confirming he is fit to travel.

 

What was the PNB Scam?

Mehul Choksi, along with his nephew Nirav Modi, is accused of orchestrating a massive fraud at the PNB’s Brady House branch in Mumbai. From 2014 to 2017, the duo allegedly colluded with bank officials to issue fraudulent Letters of Undertaking (LoUs) that enabled their companies to access overseas credit without proper collateral or oversight.

 

The fraud, amounting to nearly ₹14,000 crore, is one of the largest in Indian banking history.

 

Choksi fled India in January 2018, just days before the scam became public, and acquired Antiguan citizenship. Since then, Indian authorities have seized assets worth over ₹2,500 crore belonging to him and his company, Gitanjali Group.