Mehul Choksi Fugitive Arrested in Belgium: A Major Setback for Justice in ₹13,000 Crore PNB Fraud Case
Mehul Choksi, the fugitive diamond tycoon, has been arrested in Belgium in connection with the ₹13,000 crore Punjab National Bank (PNB) fraud case. Choksi, who had been evading Indian authorities for several years, was arrested following an extradition request from India. This marks a significant breakthrough in the long-running case that has drawn international attention.
Mehul Choksi, who was once a prominent businessman and the owner of Gitanjali Gems, was implicated in one of the largest banking frauds in India’s history. The PNB fraud came to light in 2018 when it was discovered that Choksi and his nephew, Nirav Modi, had fraudulently obtained loans from overseas banks using fraudulent Letters of Undertaking (LoUs) issued by PNB officials. These LoUs, which bypassed the bank’s internal controls, allowed the duo to secure massive credit from foreign lenders without providing collateral. The scale of the fraud was staggering, with losses amounting to approximately ₹13,000 crore.
After the scam was uncovered, Mehul Choksi fled India along with his nephew, Nirav Modi, both of whom were facing criminal charges for their involvement in the fraudulent activities. While Modi was arrested in the United Kingdom and is fighting extradition to India, Choksi managed to secure citizenship in Antigua and Barbuda through its Citizenship by Investment program, which allowed him to avoid immediate legal action in India.
Despite India’s repeated efforts to secure Mehul Choksi return, he continued to evade authorities, with his legal team using various arguments to delay his extradition. However, in May 2021, Choksi was briefly detained in Dominica on charges of illegal entry, only to be released later on medical grounds. He returned to Antigua, where he had been residing since obtaining citizenship.
The latest arrest in Belgium, however, marks a new chapter in the pursuit of justice. Belgian authorities, after verifying his presence in the country, took Choksi into custody. India’s Central Bureau of Investigation (CBI) and the Enforcement Directorate (ED), which have been investigating the case, are now working closely with Belgian officials to expedite his extradition process. Both agencies have been involved in seeking justice for the victims of the fraud and recovering the defrauded funds.
Mehul Choksi is facing a series of serious charges in India, including criminal conspiracy, cheating, money laundering, and breach of trust. Indian authorities have also attached several of his assets under the Prevention of Money Laundering Act (PMLA). His arrest in Belgium is seen as a critical step in bringing him back to India to stand trial for his alleged crimes.
The arrest also serves as a reminder of the ongoing efforts by Indian authorities to combat economic crimes and ensure accountability. The PNB scam, along with similar cases, has highlighted vulnerabilities in the banking system and the need for stronger safeguards to prevent financial fraud. Following the exposure of the scam, the Reserve Bank of India (RBI) discontinued the practice of issuing LoUs, marking a shift in banking protocols aimed at improving transparency and accountability in the sector.
As the extradition proceedings unfold, the focus will now be on whether Choksi’s legal team can successfully contest the move. Mehul Choksi, who has reportedly been suffering from health issues, may seek bail or argue against extradition on medical grounds. The outcome of this legal battle will likely have broader implications for international cooperation in dealing with financial fraud and the extradition of economic offenders.
For now, Indian authorities are hopeful that Mehul Choksi return to India will provide an opportunity to hold him accountable for his role in one of the biggest banking frauds in the country’s history.
