PNB Fraud Case: Mehul Choksi Accuses Belgian Authorities Of Unlawful Arrest, Violation Of Natural Justice

Mumbai: In a significant development in the ongoing saga of the Rs 13,500 crore Punjab National Bank (PNB) fraud case, the Belgian Court of Appeal adjourned a hearing on April 29, 2025, concerning fugitive diamantaire Mehul Choksi’s plea challenging his arrest.

While the court has not yet announced the next date of hearing, Choksi will continue to remain lodged in an Antwerp prison until further orders.

This was the second plea filed by Choksi, who is wanted by Indian authorities in connection with one of the country’s biggest banking scams. In his latest submission, Choksi claimed that his arrest was "arbitrary and unlawful," alleging a violation of legal procedures and his fundamental rights.

In the closed-door hearing, Mehul Choksi’s legal team submitted a petition drafted by Advocate Vijay Aggarwal, challenging the legality of his arrest before the Belgian Court of Appeal on Tuesday. The plea contended that Belgian authorities had violated established legal procedures and infringed upon Choksi’s fundamental rights, thereby breaching the principles of natural justice. The fugitive diamond merchant has demanded his immediate release, citing procedural irregularities. This development follows closely on the heels of the Belgian Court of Appeal’s rejection of his earlier bail application in the same case.

The adjournment on April 29 has delayed proceedings, with no confirmed date announced for the next hearing. Choksi’s defense team has indicated plans to file additional appeals, emphasizing his medical condition and arguing that extradition to India could violate his human rights due to inadequate medical facilities and potential political harassment. Aggarwal has reiterated that Choksi is willing to cooperate with Indian investigative agencies via video conferencing, stating that his client’s medical condition makes it impossible for him to travel.

This hearing followed the rejection of Choksi’s earlier bail application was rejected by a three-judge bench of the Belgian Court of Appeal, which deemed him a flight risk. The court cited his history of absconding and acquiring Antiguan citizenship to evade Indian law as grounds to deny bail. The bench also dismissed arguments about his health, stating that he was receiving adequate treatment in prison, including care related to his reported cancer diagnosis.

The adjournment delays a high-stakes legal battle unfolding in Europe, as Indian authorities continue efforts to bring Choksi back to face trial. Once a powerful figure in India’s diamond industry, Choksi is one of the key accused in the PNB scam, one of the biggest financial frauds in Indian banking history. He fled the country in 2018 and later acquired citizenship in Antigua and Barbuda, making his extradition complex and contentious.

Choksi, one of the main accused in India’s largest banking scam, had been on the run for nearly seven years. Choksi’s arrest in Belgium is seen as a diplomatic and investigative breakthrough, following sustained coordination between Indian enforcement agencies and European counterparts. With the court adjourning the matter and no new date in sight, the extradition proceedings remain in legal limbo, even as India continues its pursuit of justice in the high-profile banking scandal.