• Mehul Choksi arrested in Belgium based on India's extradition request.
• Allegedly defrauded Punjab National Bank for nearly ₹14,000 crore.
• Choksi's lawyers prepare to resist extradition on health and political grounds.
• His nephew, Nirav Modi, is already in custody in the UK facing similar charges.
• Extradition process faces legal challenges citing issues related to Indian prison conditions.

Fugitive diamond merchant Mehul Choksi was arrested in Belgium following an extradition request from the Indian authorities connected to his alleged role in a major banking fraud case involving Punjab National Bank (PNB) amounting to nearly ₹14,000 crore. The action against Choksi came after years of evasion since he fled India in January 2018, initially seeking refuge in Antigua, according to reports from the Times of India.

Choksi's arrest on a Saturday in Belgium was influenced by a renewed push from Indian investigation agencies like the Enforcement Directorate (ED) and Central Bureau of Investigation (CBI), especially after a Red Notice against him from Interpol was lifted. Belgian authorities received comprehensive documentation along with arrest warrants from Mumbai courts dating back to 2018 and 2021, as reported by the Times of India.

Upon his arrest, Choksi’s lawyer, Vijay Aggarwal, stated they would contest the extradition on two primary grounds: the political nature of the charges against Choksi and serious concerns regarding his health, asserting that he is undergoing treatment for cancer. "He is extremely sick and has health conditions that threaten his well-being," said Aggarwal, indicating they would also invoke the recent UK High Court ruling that highlighted poor conditions in Indian prisons, as detailed in reports from the Times of India.

The PNB scam, a monumental case in India’s financial crime history, involved the fraudulent use of banking instruments, such as Letters of Undertaking (LoUs), leading to substantial losses for the bank. Choksi, along with his nephew Nirav Modi, is accused of colluding with bank officials to misuse these instruments, which facilitated fraudulent transactions valued over $1.8 billion, according to the South China Morning Post.

Choksi’s convoluted escape from justice includes attempts to elude authorities in Dominica and other Caribbean nations before his eventual capture in Belgium. His fugitive status complicates the legal proceedings as claims of inadequate treatment in Indian jails could impede extradition efforts, aligning with how legal defenses are being framed by various fugitives, as analyzed by experts cited in the Times of India.

While Choksi now faces a legal battle in Belgium, his eventual extradition is not guaranteed due to complex interplay between health justifications, human rights considerations, and the political nature of the allegations against him. This case mirrors current global challenges of fugitives exploiting legal and human rights frameworks to avoid accountability for serious crimes, as set forth in discussions by legal analysts following Choksi's arrest covered in numerous outlets including the BBC.