Fugitive diamond tycoon Mehul Choksi, one of the central figures in the ₹13,000 crore Punjab National Bank (PNB) fraud case, has been arrested in Belgium, sources confirmed on Monday, April 14, 2025. The arrest comes after a formal extradition request by the CBI and Enforcement Directorate, signaling a major breakthrough in India’s long-standing efforts to bring financial defaulters to justice.
Choksi, who had been residing in Antigua and Barbuda since 2018, was reportedly in Belgium for medical treatment. His arrest on Saturday marks a significant escalation in the case, with Indian authorities now moving swiftly to ensure his return to face legal proceedings in India. Despite the earlier removal of an Interpol Red Notice, Indian agencies continued to build their case through diplomatic channels, submitting multiple non-bailable warrants issued by a Mumbai court.
The arrest comes as a huge boost to the government’s pursuit of high-profile economic offenders, especially since Choksi’s nephew Nirav Modi—another key accused—remains jailed in the UK, resisting extradition since 2019. Together, the duo is accused of orchestrating one of India’s largest banking scams, siphoning off thousands of crores from PNB by fraudulently securing Letters of Undertaking (LoUs) and Foreign Letters of Credit (FLCs) with the alleged support of bank officials.
Investigative reports reveal that between March and April 2017, 165 LoUs and 58 FLCs were issued without proper approval or entries in the core banking system. These documents helped Choksi’s firms, including Gitanjali Gems, obtain overseas credit from international banks such as SBI (Mauritius and Frankfurt), Axis Bank (Hong Kong), Allahabad Bank (Hong Kong), Bank of India (Antwerp), and Canara Bank (Manama).
When the fraud surfaced, PNB was forced to repay a staggering ₹6,344.97 crore to those foreign institutions. Meanwhile, the CBI filed two charge sheets, and the ED initiated three prosecution complaints against Choksi. Additionally, the ED has seized assets worth over ₹2,565.90 crore, which are now being monetized following court approval.
Legal experts believe that Choksi’s legal team may cite health issues to contest extradition. However, Indian agencies remain optimistic, armed with strong legal documentation and backed by international cooperation under Mutual Legal Assistance Treaties (MLATs).
Choksi’s arrest in Belgium reignites public interest in high-value fraud cases and adds momentum to India’s global crackdown on economic offenders. As the legal process unfolds, all eyes will be on Belgium’s response to India’s extradition request—and whether Choksi will finally face trial in the country where the scandal began.
Stay tuned newsdailyupdates for more updates.
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