Absconding diamond jeweller Mehul Choksi, accused of involvement in Rs 13,000 crore Punjab National Bank (PNB) loan 'fraud' case, has been detained in Belgium, following an extradition request by Indian probe agencies.

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The action against Choksi was taken on Saturday (Apr 12) in Belgium, after the local authorities confirmed his presence in the country, news agency ANI reported, citing sources.

After the Interpol Red Notice against him for arrest was "deleted", Indian agencies, the Enforcement Directorate (ED) and the CBI, moved for his extradition from Belgium, according to PTI.

WATCH | Mehul Choksi arrested in Belgium following India's extradition request: sources

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Choksi's defense team set for legal battle

The diamantaire's defense team is gearing up for a legal fight, planning to seek bail and argue that it would hinder his extradition.

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His legal team asserts that he has solid grounds to contest the extradition, citing health issues and other factors as key arguments.

The 65-year-old diamond merchant is wanted by the CBI and ED for allegedly defrauding PNB of Rs 13,850 crore. He fled India on January 2, 2018. His nephew, Nirav Modi, was also implicated in the scam. 

ED alleged that Choksi, his firm Gitanjali Gems and others "committed the offence of cheating against Punjab National Bank in connivance with certain bank officials by fraudulently getting the LOUs (letters of undertaking) issued and got the FLCs (foreign letter of credit) enhanced without following prescribed procedure and caused a wrongful loss to the bank."

Choksi fled India, initially going to the US before settling in Antigua, where he had obtained citizenship in 2017. He was later arrested in Dominica while allegedly attempting to flee to Cuba. However, his lawyer claimed he was kidnapped from Antigua.

Dominica deported Mehul Choksi back to Antigua, despite India's extradition request. He then reportedly left for Belgium, citing cancer treatment.

(With inputs from agencies)