Fugitive diamond tycoon Mehul Choksi, wanted in the ₹13,850 crore PNB fraud case, has been arrested in Belgium after years of evading Indian authorities.
MUMBAI: In a major development in one of India’s most notorious banking fraud cases, Mehul Choksi—the fugitive diamond tycoon implicated in the multi-crore Punjab National Bank (PNB) scam—has reportedly been arrested in Belgium.
According to sources from the Central Bureau of Investigation (CBI) who spoke to media , the 65-year-old businessman was apprehended on Saturday, April 12. His arrest comes in connection with two open-ended arrest warrants that were previously issued against him by a Mumbai court, dating back to 2018 and 2021. These warrants had remained pending as Indian authorities continued efforts to bring Choksi back to face trial.
Choksi, who had fled India in early 2018 just before the fraud was uncovered, is currently being held in a Belgian prison. He is expected to file for bail shortly, and is likely to cite medical reasons as grounds for his plea, a tactic he has employed in the past to resist extradition.
This arrest marks a significant step forward for Indian investigative agencies, which have been actively pursuing Choksi through diplomatic and legal channels since he fled the country. The PNB scam, involving fraudulent letters of undertaking worth over Rs.13,000 crore, also named his nephew Nirav Modi, who is currently fighting extradition from the United Kingdom.
APPEAL AGAINST THE ARREST
Fugitive diamond trader Mehul Choksi, accused in the Rs.13,000 crore Punjab National Bank (PNB) fraud case, was arrested in Belgium on Saturday following an extradition request from Indian authorities. Choksi’s legal team, led by advocate Vijay Aggarwal, confirmed on Monday that they are preparing to file an appeal against his arrest, primarily citing his medical condition as he is reportedly undergoing cancer treatment in Belgium. His lawyers argue that he is not a flight risk and cannot travel due to health concerns. During earlier court proceedings, it was submitted that Choksi had moved to Brussels from Antigua and Barbuda for urgent medical care.
Meanwhile, a special Mumbai court is yet to decide on applications filed by Choksi challenging proceedings under the Fugitive Economic Offenders Act, which could result in the confiscation of his assets if he is officially declared a fugitive.
Mehul Choksi Arrested in Belgium After Indian Extradition Request
Mehul Choksi, a key accused in the RS.13,000 crore Punjab National Bank (PNB) loan fraud case, has been apprehended in Belgium following a coordinated effort between Indian and Belgian authorities. The fugitive diamond merchant was detained by Belgian police on Saturday, marking a significant breakthrough in the years-long investigation. Choksi had reportedly escaped from Antigua towards the end of 2021, where he had been residing since obtaining citizenship.
Who is Mehul Choksi?
Mehul Choksi, 65, is a diamond businessman originally from India and the former head of the Gitanjali Group. His name gained national and international notoriety after he was implicated in the massive PNB fraud case, one of India’s biggest banking scandals.
In 2018, Choksi, along with his nephew Nirav Modi—also a fugitive—and several family members, employees, and complicit bank officials, was booked by the Central Bureau of Investigation (CBI) and the Enforcement Directorate (ED). The charges stemmed from fraudulent activities conducted at PNB’s Brady House branch in Mumbai.
In an attempt to dodge the Indian legal system, Choksi acquired citizenship from Antigua and Barbuda in 2017 under its Citizenship by Investment scheme. His arrest in Dominica in 2021 sparked controversy, with Choksi claiming he had been abducted by Indian operatives from Antigua.
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Understanding the PNB Loan Fraud
The Punjab National Bank scam, exposed in early 2018, is regarded as one of India’s largest financial frauds, amounting to nearly Rs.13,000 crore. The scam was masterminded by Nirav Modi and Mehul Choksi, who allegedly colluded with certain PNB staff.
The fraud was carried out through the misuse of Letters of Undertaking (LoUs)—a form of bank guarantee used for obtaining overseas loans. Between 2011 and 2018, two PNB employees at the Brady House branch in Mumbai issued LoUs via the SWIFT network without logging them into the bank’s internal records. This manipulation enabled Nirav Modi’s firms—Diamond R US, Solar Exports, and Stellar Diamonds—to secure foreign credit from various Indian banks’ overseas branches without submitting adequate security.
Choksi’s Flight from India and the Expanding Global Manhunt
Mehul Choksi, the fugitive diamantaire at the center of one of India’s largest banking frauds, fled the country in January 2018—just days before the Rs.13,000 crore scam involving Punjab National Bank came to light. His sudden disappearance raised eyebrows, especially as it coincided with the beginning of investigations into the massive fraud.
Not long after, Choksi was traced to Antigua and Barbuda, where he had secured citizenship through the Caribbean nation’s Citizenship by Investment Program.
However, the saga took a dramatic turn in May 2021 when Choksi mysteriously vanished from Antigua. He was later found in Dominica, under suspicious circumstances, reportedly attempting to flee to Cuba by boat. The incident not only fueled speculation about a possible abduction but also ignited a complex legal and diplomatic standoff involving three nations—Antigua and Barbuda, Dominica, and India. The situation led to court hearings in Dominica, where Choksi challenged his deportation and claimed he was taken from Antigua against his will.
In a new development, Belgian authorities have recently confirmed Choksi’s presence within their borders. He is said to have acquired a residency permit there, further complicating the international chase and raising questions about his continued ability to exploit legal loopholes across jurisdictions.
Back home, the Indian government has been actively pursuing recovery of assets linked to high-profile economic offenders. In December 2024, Finance Minister Nirmala Sitharaman announced in Parliament that assets worth Rs.22,280 crore, linked to individuals such as Mehul Choksi, Nirav Modi, and Vijay Mallya, had either been seized or liquidated to help recover losses incurred by public sector banks.
Choksi currently faces a slew of serious criminal charges under Indian law, including criminal conspiracy, cheating, money laundering, and corruption. With extradition proceedings now gaining momentum, Indian enforcement agencies are intensifying efforts to ensure his return.
If successful, his extradition would mark a major breakthrough in India’s ongoing crackdown on financial fugitives and could set a precedent for cross-border accountability in white-collar crimes.
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