Fugitive diamond merchant Mehul Choksi, wanted in the ₹14,000 crore Punjab National Bank (PNB) fraud case, has been arrested in Belgium following an extradition request by Indian authorities.
Choksi, who had been on the run since 2018, was traced to Antwerp, where he was reportedly residing with his wife Preeti Choksi, a Belgian national. He had secured an ‘F Residency Card’ in Belgium on November 15, 2023, granting him legal residency and freedom to travel across the European Union.
Officials confirmed his arrest came after India’s Central Bureau of Investigation (CBI) formally requested his extradition in March 2025. The request was backed by two non-bailable warrants issued by a Mumbai court on May 23, 2018, and June 15, 2021.
Residency May Complicate Extradition
While India is pushing for his return, Choksi’s Belgian residency could delay the process. Legal experts suggest that his EU mobility rights may add layers of diplomatic and legal hurdles to the extradition proceedings.
Choksi was declared a Fugitive Economic Offender under Indian law for his role in defrauding PNB through fraudulent Letters of Undertaking (LoUs) and Foreign Letters of Credit (FLCs), allegedly in collusion with bank officials.
Multiple Charges Filed
The Enforcement Directorate has filed three charge sheets against Choksi, his wife, and others, including his company Gitanjali Gems. In its filings, the ED accused them of:
“Cheating Punjab National Bank in connivance with certain bank officials by fraudulently getting the LOUs issued and getting the FLCs enhanced without following the prescribed procedure, causing wrongful loss to the bank.”
The CBI has also filed separate charge sheets against Choksi in connection with the same scam.
Choksi and his nephew Nirav Modi are both central figures in the case, which remains one of the biggest banking scandals in India’s history.
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