Prateeksha Thakur
April 14, 2025 | New Delhi –
Mehul Choksi, the fugitive Indian businessman at the centre of one of India’s biggest banking frauds, has been arrested in Belgium by local authorities following a formal request by the Indian government. His arrest on April 12 is a key moment in the years-long chase to bring back one of the main accused in the ₹13,500 crore Punjab National Bank (PNB) scam.
Who is Mehul Choksi ?
Mehul Choksi, who is the owner of Gitanjali Gems, along with his nephew Nirav Modi, is the mastermind behind a massive scheme involving the fraudulent use of Letters of Undertaking (LoUs) from PNB’s Brady House branch in Mumbai. These LoUs, issued without proper collateral and in violation of banking norms, were used to secure overseas credit from other Indian banks for over seven years—from 2011 to early 2018.
According to investigators from the Central Bureau of Investigation (CBI) and the Enforcement Directorate (ED), the scam was executed in collusion with a few rogue bank officials who bypassed the core banking system to avoid detection. The fraud came to light in January 2018, and just days after that, Choksi left India.
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The diverted money was reportedly channelled through a network of shell companies, many of which were based in Hong Kong and the UAE, to fund luxury purchases, high-end real estate, and international operations. According to the ED chargesheets, money laundering was carried out using complicated financial instruments and layered transactions.
Choksi obtained Antiguan citizenship under the Citizenship by Investment Program of Antigua after fleeing India in the first week of January 2018. Even as Indian investigators focused on a plan of action, his 2017 application was granted. He has since evaded extradition to India, citing legal technicalities and ill health.
Choksi made headlines again in 2021 after a disputed incident in Dominica, where he was allegedly kidnapped from Antigua and transported against his will to the Caribbean island. Though India tried to have him extradited from Dominica, the case fell apart amid legal and diplomatic hurdles.
This time, Choksi resurfaced in Belgium, reportedly living in Antwerp under an “F residency card” obtained through his wife, who is a Belgian citizen. His presence in the country was known to Indian officials for some time, but the arrest only came after fresh diplomatic coordination and a renewed extradition request.
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Despite the arrest, Choksi is likely to contest extradition on health grounds. His lawyers claim he is undergoing treatment for chronic lymphocytic leukemia and is unfit to travel.
NI Bureau
