Who Is Monika Kapoor? CBI Takes Custody Of Alleged Financial Fraud Accused From US Authorities

In a major breakthrough, the Central Bureau of Investigation (CBI) has taken custody of Monika Kapoor, an alleged economic offender wanted in India for her role in a multi-crore financial fraud case. According to top officials, Kapoor was apprehended in the United States and is now in CBI custody following a coordinated effort with U.S. authorities. 
 

The development comes after months of legal wrangling over her extradition, which the US Supreme Court had temporarily blocked on May 19. Kapoor, who holds Indian citizenship, is accused of orchestrating large-scale financial irregularities and defrauding several institutions, prompting a red-corner notice and a protracted international legal pursuit.

Monika Kapoor, who has been on the run for the past 26 years, is finally set to be brought back to India by a team of Central Bureau of Investigation (CBI) officials tonight, July 9, according to media reports

Why Monika Kapoor Fought Her Extradition to India

On May 19, US Supreme Court Justice Sonia Sotomayor issued an administrative stay on a lower court's ruling that allowed Indian citizen Monika Kapoor to be extradited to India. The temporary hold blocks a March 26 decision by a three-judge panel of the U.S. Court of Appeals for the 2nd Circuit, buying the Court more time to consider Kapoor’s application seeking to stop her removal. While Justice Sotomayor did not provide reasons for the stay, it effectively paused Kapoor’s extradition process until further order, according to media reports. 

Kapoor, who entered the U.S. in 1999 and overstayed her visa, was placed in immigration removal proceedings in 2010. She filed for asylum, withholding of removal, and protection under the U.N. Convention Against Torture, claiming fear of persecution if returned to India.

As per media reports, in April 2010, Indian authorities issued a warrant against Kapoor on charges of fraud under five sections of the Indian Penal Code. According to the 2nd Circuit ruling, Kapoor and her two brothers allegedly forged documents related to jewellery transactions to secure duty-free import licenses, defrauding the Indian government of approximately $679,000.

In her application to the US Supreme Court, Kapoor claimed she fled India in 1999 with her two young children to escape political persecution. She alleged that her family was targeted after refusing to give in to extortion attempts by officials. Kapoor recounted incidents of illegal detention, verbal abuse, and threats of sexual violence by Indian authorities, saying she lived in constant fear for her and her children’s safety.

A U.S. magistrate judge in New York found Kapoor eligible for extradition under the U.S.-India treaty. The U.S. Secretary of State authorized the extradition after rejecting Kapoor’s argument that returning her would violate protections under the U.N. Convention Against Torture.

Kapoor challenged that decision by filing a habeas corpus petition, asserting that she would face torture if extradited. However, U.S. District Judge Frederic Block dismissed the case, saying the court lacked jurisdiction. The 2nd Circuit upheld that ruling, citing a 2001 Supreme Court precedent (INS v. St. Cyr), which states that federal courts are barred from hearing habeas claims under the Convention in extradition cases, as per media reports 

Kapoor’s application to the Supreme Court, filed on May 15, said this approach contradicts rulings from other U.S. circuits and denies her the right to fully argue her fear of torture. She expressed concern that without a stay, she would be extradited before the Court could review her case. 

According to the media reports, Justice Sotomayor directed Vincent F. DeMarco, the lead respondent and U.S. Marshal for the Eastern District of New York, to respond by May 27.