In a significant development for India's long-standing efforts to bring back key figures involved in one of the country's largest banking frauds, fugitive jeweller Mehul Choksi has been arrested in Belgium. The 65-year-old businessman, wanted for his alleged role in the ₹13,000-crore Punjab National Bank (PNB) loan fraud case, was taken into custody on April 12, 2025, following an extradition request from Indian authorities.
The Belgian Federal Public Service of Justice confirmed Choksi's arrest on Monday, stating that he is currently detained while awaiting further judicial proceedings. "Access to his legal counsel has been assured," a spokesperson for the ministry said. The response from Belgium comes after years of Choksi evading Indian law enforcement, having fled India in January 2018 just days before the fraud was publicly uncovered.
Choksi's arrest is seen as a pivotal moment in the ongoing legal battle surrounding the PNB fraud, which has implicated several high-profile individuals, including his nephew, Nirav Modi, who is currently imprisoned in London. Both Choksi and Modi are accused of orchestrating a scheme that defrauded PNB of nearly $1.8 billion (£1.3 billion) through fraudulent Letters of Undertaking (LoUs) issued by the bank's Brady House branch in Mumbai.
The PNB scam came to light in early 2018 when the bank reported the fraudulent issuance of LoUs that allowed Choksi and Modi to secure overseas credit for their companies, including Gitanjali Gems and Diamond R US. Investigations revealed that these LoUs were issued without following prescribed banking procedures, leading to a massive financial loss for the bank.
According to the Central Bureau of Investigation (CBI), Choksi's companies fraudulently obtained 165 LoUs and 58 Foreign Letters of Credit (FLCs) during March and April 2017, which were used to discount 311 bills. The CBI's supplementary chargesheet states that PNB made payments totaling ₹6,344.97 crore (approximately $965 million) to overseas banks that had advanced credit based on these fraudulent documents.
Choksi's lawyer, Vijay Aggarwal, confirmed the arrest and indicated that they are in the process of filing an appeal against his detention. "Our appeal seeking his release on bail will mainly be on the ground of his medical condition, as he is undergoing treatment for cancer," Aggarwal stated. He emphasized that Choksi is not a flight risk and that they will argue the extradition request is politically motivated.
In addition to challenging the extradition, Choksi's legal team plans to argue that the conditions in Indian prisons are inadequate. "This is a political case, and the human condition in Indian prisons is not good," Aggarwal added. The appeal is expected to be heard after a five-day period, during which Choksi will remain in custody.
Choksi's involvement in the PNB fraud has been under scrutiny since the allegations surfaced. The enforcement agencies have filed multiple chargesheets against him and his associates, detailing accusations of criminal conspiracy, money laundering, and cheating. The Enforcement Directorate (ED) has also initiated proceedings to declare him a fugitive economic offender, which would allow for the confiscation of his assets even before a trial begins.
Choksi's escape from India was meticulously planned; he obtained citizenship in Antigua and Barbuda in late 2017 before fleeing the country. The authorities allege that he devised this plan well in advance of the FIR being filed against him in the PNB fraud case. In 2021, he was apprehended in Dominica but was subsequently sent back to Antigua, complicating extradition efforts.
Choksi's arrest in Belgium marks a turning point in the protracted legal saga surrounding the PNB fraud. Indian authorities have been pursuing him through diplomatic channels, leveraging the long-standing extradition treaty between India and Belgium. Following his arrest, a team of senior officials from the CBI is expected to travel to Belgium to facilitate the extradition process.
As the case unfolds, the implications of Choksi's arrest could resonate beyond the immediate legal proceedings. Hariprasad SV, an entrepreneur who alerted authorities about the PNB scam, expressed optimism about the arrest, stating, "Apart from bringing him back, the most important thing is to get back all those billions of dollars he looted from India." His sentiments reflect a broader concern over the financial repercussions of the fraud, which has shaken the Indian banking system.
Choksi's story is not just about financial crime; it also highlights the challenges of international law enforcement in an increasingly globalized world. As Choksi prepares to contest his extradition, the outcome will be closely watched, not just for its legal implications but also for the message it sends about accountability in high-profile financial crimes.
With Choksi's arrest, the path toward justice for the victims of the PNB fraud may finally be within reach. However, the legal battles are far from over, and the complexities surrounding extradition, health claims, and political motivations will continue to shape the narrative in the coming months.
