Fugitive businessman Mehul Choksi arrested in Belgium over PNB scam

New Delhi: Belgian authorities have arrested Mehul Choksi, a fugitive diamond merchant and key accused in the Rs 14,000-crore Punjab National Bank fraud case, in response to India's extradition request. 

The Central Bureau of Investigation (CBI) confirmed the arrest, which was made based on two non-bailable warrants issued by a Mumbai court on May 23, 2018, and June 15, 2021. Indian officials had located Choksi in Belgium and promptly requested extradition proceedings, reportedly after learning that he was allegedly planning to relocate to Switzerland for medical treatment at a cancer hospital. Choksi, 65, is currently in jail and is expected to seek bail, citing ill health and other reasons.

Wanted by CBI and ED

Choksi and his nephew, Nirav Modi, who is awaiting extradition from London, are wanted by the CBI and the Enforcement Directorate (ED) for allegedly defrauding the PNB's Brady House branch in Mumbai using letters of undertaking (LoUs) and foreign letters of credit (FLCs) by bribing bank officials. They fled India in January 2018, weeks before the scam surfaced.

The Belgian foreign ministry had confirmed Choksi's presence in the country last month, stating they were aware of his presence and "attached great importance and attention to it." Choksi reportedly obtained a residency card in Belgium and has been living in Antwerp with his wife, Preeti Choksi, a Belgian citizen. He allegedly left Antigua and Barbuda, his citizenship country, for medical treatment.

In December 2024, Union Finance Minister Nirmala Sitharaman reported that properties worth Rs 22,280 crore had been restored or sold to pay back debts of individuals like Choksi.