Mehul Choksi Arrested in Belgium: A Major Breakthrough in PNB Scam

Key Highlights

• Fugitive diamond trader Mehul Choksi, wanted in the ₹13,850 crore Punjab National Bank (PNB) fraud case, was arrested in Belgium on April 12, 2025.
• Choksi had been living in Antwerp with Belgian residency since November 2023, complicating extradition efforts.
• Indian authorities, including the Central Bureau of Investigation (CBI) and Enforcement Directorate (ED), have pushed for his extradition to face trial in India.
• Choksi’s legal team plans to challenge the extradition, citing health concerns and alleged political motivations.

New Delhi: Fugitive businessman Mehul Choksi, a key accused in the infamous Punjab National Bank (PNB) scam, was detained by Belgian authorities following India’s extradition request. The arrest marks a significant step in India’s efforts to bring back one of the masterminds behind its largest banking fraud.

Choksi had been living in Antwerp with his wife, Preeti Choksi a Belgian citizen after securing an ‘F Residency Card’ in Belgium. His arrest comes after years of evasion and legal battles across multiple jurisdictions.

The Punjab National Bank Scam: How It Unfolded

The PNB scam surfaced in early 2018, shaking India’s financial sector. Here’s a breakdown of the fraud:

• Modus Operandi: Choksi and his nephew Nirav Modi colluded with rogue PNB officials to fraudulently obtain Letters of Undertaking (LoUs). These LoUs enabled them to secure massive loans from overseas branches of Indian banks without proper collateral or adherence to RBI guidelines.
• Scale of Fraud: Investigators revealed that over 1,200 fake LoUs were issued between 2011 and 2017, amounting to ₹13,850 crore. The funds were allegedly siphoned off and laundered through shell companies like Gitanjali Gems and Stellar Diamonds.
• Impact: The scam caused significant losses to PNB and other banks involved, undermining public confidence in India’s banking system.

India’s Pursuit of Mehul Choksi

Indian agencies have been relentless in their pursuit of Choksi since he fled the country in January 2018:

1. Legal Proceedings: The Enforcement Directorate (ED) filed three charge sheets against Choksi under the Prevention of Money Laundering Act (PMLA), detailing his role in embezzlement and fraudulent transactions.
2. Fugitive Economic Offender: In 2018, Choksi was declared a Fugitive Economic Offender (FEO), enabling authorities to confiscate his assets worth over ₹2,500 crore.
3. Extradition Efforts: After locating him in Belgium earlier this year, the CBI submitted an extradition request supported by non-bailable warrants issued by Mumbai courts.

Challenges Ahead: Legal Battle Over Extradition

Choksi’s legal team has announced plans to challenge his extradition on multiple grounds:

• Health Concerns: His lawyers claim he is undergoing treatment for blood cancer and is unfit to travel.
• Human Rights Violations: They argue that Indian prison conditions are inadequate and pose risks to his safety.
• Political Motivations: Choksi has labeled the case against him as politically driven, further complicating extradition proceedings.

These challenges could delay his return to India despite mounting evidence against him.

Timeline of Key Events in the PNB Scam

What Lies Ahead?

Choksi’s arrest is a significant milestone but does not guarantee immediate extradition due to legal complexities. Indian authorities remain committed to bringing him back to face trial for defrauding PNB and damaging India’s financial credibility.

His case serves as a stark reminder of vulnerabilities within banking systems and underscores the need for stricter regulatory oversight. As proceedings unfold, all eyes will be on whether justice will finally be served!