Who Is Mehul Choksi?

Mehul Choksi: A Detailed Look at His Arrest and the PNB Scam

Introduction to the Case

Mehul Choksi, a prominent businessman in the diamond industry, has been at the center of one of India’s biggest financial frauds—the ₹13,000 crore scam involving Punjab National Bank (PNB). After fleeing India in 2018, Choksi was subject to multiple legal actions and international pursuit. On April 12, 2025, Choksi was detained in Belgium, marking a significant step in the Indian government’s efforts to bring him to justice.

The PNB Scam: Background

The scam, which first came to light in early 2018, revolved around the fraudulent issuance of Letters of Undertaking (LoUs) by PNB to Choksi’s companies. These LoUs, which allowed Choksi to secure credit from overseas lenders, were later discovered to be fraudulent. The scale of the fraud was staggering, with the total amount defrauded estimated at ₹13,000 crore, making it one of the largest financial scams in India’s history.

Choksi, who was the owner of the now-defunct Gitanjali Group, allegedly masterminded the scam alongside Nirav Modi, another businessman who was similarly accused. Both men were key figures in the PNB fraud and had close ties to the bank’s operations. Choksi’s companies used these LoUs to secure funds that were never repaid, leading to massive losses for the public sector bank.

Flight and Extradition Attempts

As news of the scam broke in January 2018, Choksi fled India and took refuge in Antigua and Barbuda. Choksi had obtained citizenship there through the country’s citizenship-by-investment program, which allowed him to secure a passport. His sudden departure raised alarm bells, and soon after, India’s Central Bureau of Investigation (CBI) and Enforcement Directorate (ED) launched investigations into his activities.

The Indian government issued multiple non-bailable warrants against Choksi, and his name was added to the list of fugitives. However, the legal battle to bring him back was fraught with challenges, as Choksi’s legal team fought against his extradition. The situation became even more complicated when in 2021, Choksi claimed he was abducted from Antigua and taken to Dominica, although this claim was widely disputed.

Choksi’s Residency in Belgium

Choksi’s efforts to avoid extradition didn’t stop with his stay in Antigua. Reports revealed that Choksi was residing in Antwerp, Belgium, where he had secured a residency card in November 2023. The residency, which was reportedly obtained through fraudulent documentation, added another layer of complexity to his situation.

Belgian authorities were reportedly aware of Choksi’s presence and had been monitoring his activities. Despite his attempts to stay under the radar, Choksi’s movements were tracked by both Indian and international law enforcement agencies.

Arrested in Belgium

In a major breakthrough, Belgian authorities arrested Choksi on April 12, 2025, in Antwerp. The arrest came after India formally requested his extradition to face charges related to the PNB scam. The arrest is a result of collaborative efforts between Indian and Belgian law enforcement agencies, who have worked together to bring Choksi to justice.

While Choksi’s legal team claims that he was in Belgium for medical treatment, including for suspected cancer, the Indian authorities have consistently maintained that the businessman is trying to delay the legal process. Choksi’s health claims have been met with skepticism, especially given the number of legal battles he has been involved in over the years.

Implications for Extradition

The arrest of Mehul Choksi in Belgium is a crucial development in the long-running saga of the PNB scam. The extradition process, however, is expected to take time due to legal complexities, potential appeals, and the international legal framework involved. India will need to navigate through these challenges to secure Choksi’s return.

The case has drawn attention not only in India but also internationally, as it underscores the growing need for effective cooperation between countries in combating financial crimes. As the extradition process unfolds, it will be a significant test for the international legal system and the ability of governments to address issues related to financial fraud.

Future Prospects

The arrest of Mehul Choksi is undoubtedly a major milestone in the pursuit of justice for the PNB scam. If extradited to India, Choksi will face multiple charges, including money laundering and fraud. His case will serve as a precedent for other high-profile financial crime cases, demonstrating the lengths to which authorities are willing to go to bring fugitives to justice.

For India, the extradition will also send a strong message about the country’s commitment to rooting out financial corruption and holding criminals accountable, regardless of where they may try to hide. As the legal process continues, it will be watched closely by those involved in financial regulation and international law enforcement.

Conclusion

Mehul Choksi’s arrest in Belgium represents a significant moment in the ongoing battle for justice in the Punjab National Bank fraud case. While the extradition process may be drawn out, the efforts of Indian law enforcement to secure his return reflect a broader commitment to tackling financial corruption. The legal outcome of this case will have far-reaching implications for both India and the international community in their fight against financial crime.