Antigua-Barbuda government ‘would extradite Choksi’

First published: 28 July 2018, at 4:36 am

Antigua and Barbuda would extradite Mehul Choksi to India if requested, as allegations of fraud rumble on – and another citizenship scandal for the nation.

The businessman and another family member are accused of colluding with two employees of Punjab National Bank in fraud understood to have cost one of the country’s biggest lenders around US$1.8 billion.

Choksi, 59, denies any wrongdoing. His lawyer confirmed on Friday that his client was in the Caribbean.

It has emerged that the billionaire, who runs a large jewellery company in India, was granted an Antigua and Barbuda passport in November 2017 through the twin-island state’s citizenship by investment programme. This was just a matter of months before the criminal allegations were announced.

Interpol is conducting investigations into Choksi’s background, according to Antigua-Barbuda’s Citizenship by Investment Unit (CIU) but WIC News understands that there has been no formal approach by the government of India to arrange Choksi's extradition.

Interpol is yet to issue a 'red corner notice' – in effect an international arrest warrant – so he is free to travel.

But it looks as though the Caribbean country would be willing to work with the South Asian state if they reach out.

EP Chet Greene, Antigua-Barbuda’s foreign affairs and immigration minister, said: “If a request is received we will honour any legitimate request made of us notwithstanding that we do not have any extradition agreements with India.

“That is the extent of our commitment to preserving the integrity of our [citizenship by investment] programme.”

He added that as far as he was aware there had been no request from the Indian government of any law enforcement organisation.

Another source close to the CIU told WIC News that there was “no appetite to protect a fugitive” and that if an official approach was made “the jeweller would be heading out of the Caribbean”.

Due diligence in focus – again

In a press release issued by his lawyers to local media earlier this week, Choksi “categorically” denied the accusations against him over what is India’s largest ever case of fraud.

“There is no truth in those allegations,” he added.

The retail tycoon also said that his reason for getting citizenship of Antigua and Barbuda was to further his “business interests in the Caribbean” and to take advantage of visa-free travel to a range of nations.

WIC News understands that the India-born businessman swore an oath of allegiance to his new home in the middle of January 2018.

The fact that Choksi was able to obtain an Antigua-Barbuda passport just months before the Punjab National Bank scandal erupted has cast more negativity on the Caribbean state’s citizenship by investment programme in what has already been a difficult year.

The scheme’s due diligence has come under particular attack, with both experienced observers and the opposition in Antigua and Barbuda questioning how thorough the research and vetting system is if Choksi became a suspect so close to getting his passport.

In June 2017, Canada lifted a visa exemption for citizens of Antigua and Barbuda.

Prime Minister Gaston Browne confirmed that the move was related to concerns over the country’s citizenship by investment programme.

[caption id="attachment_8544" align="alignright" width="300"] Gaston Browne.[/caption]

“At the time, the Canadian official said that a concern is that Antigua and Barbuda’s citizenship by investment programme is not a residency programme,” Browne said.

Industry leaders at the time spoke to WIC News and explained that issues in Antigua and Barbuda don’t reflect the whole Caribbean region.

St Kitts and Nevis, for example, retrospectively strip economic citizens of their passports if they fail ongoing due diligence tests.

India-based NDTV reported that the US State Department had already labelled Antigua-Barbuda’s citizenship by investment programme as "among the most lax in the world".

The CIU has responded to the allegations, telling one Antigua-based publication that Choksi’s application was “subject to robust due diligence international investigation” and that “the 2017 investigation revealed no derogatory information.”

The organisation labelled India and “ally”.