Fugitive diamond trader Mehul Choksi, wanted in the ₹13,000 crore Punjab National Bank (PNB) loan fraud case, has been arrested in Belgium following coordinated efforts between Indian and Belgian authorities. Choksi, 65, had been living in hiding since fleeing Antigua, reportedly at the end of 2021, and was finally apprehended by Belgian police on Saturday.
Sources confirmed that Indian investigative agencies had been in close contact with their Belgian counterparts over the past two months, tracking Choksi’s movements and gathering intelligence. His arrest marks a crucial development in the years-long pursuit of justice in one of India's largest banking scandals.
While Indian authorities are preparing the legal paperwork for his extradition, Choksi’s legal team is expected to file for bail citing medical grounds. However, officials remain confident that the extradition request will proceed given the seriousness of the charges and the cooperation shown by Belgian officials.
Who is Mehul Choksi?
Mehul Choksi was once a prominent figure in India’s jewellery industry, heading the Gitanjali Group, a major retail jewellery chain. His downfall began in 2018 when the Enforcement Directorate (ED) and Central Bureau of Investigation (CBI) named him, along with his nephew Nirav Modi, as key conspirators in the PNB fraud case.
To escape prosecution, Choksi acquired citizenship in Antigua and Barbuda in 2017 under the country’s Citizenship by Investment program. After the scam broke in 2018, he fled India and took refuge in the Caribbean. His arrest in Dominica in 2021 under mysterious circumstances — where he claimed he was abducted from Antigua — sparked international attention and controversy.
What is the PNB Scam?
The Punjab National Bank scam came to light in early 2018 and involved fraudulent issuance of Letters of Undertaking (LoUs) by bank officials at the Brady House branch in Mumbai. Between 2011 and 2018, these LoUs were used by Nirav Modi’s companies to secure credit from overseas branches of Indian banks without any official record or collateral.
The fraud, executed via the SWIFT international banking system, allowed Choksi, Nirav Modi, and their associates to siphon off thousands of crores from Indian banks. The magnitude of the scam shook the financial sector and led to a nationwide crackdown on high-value economic offenders.
