After years on the run, diamond merchant Mehul Choksi, a key figure in the substantial Punjab National Bank (PNB) loan fraud case, has been apprehended by authorities in Belgium. Sources within the Central Bureau of Investigation (CBI) confirmed his arrest earlier today.
The 65-year-old businessman was taken into custody on Saturday and is currently being held in jail. Law enforcement officials acted upon two outstanding arrest warrants issued by a Mumbai court – one dated May 23, 2018, and the other from June 15, 2021 – as reported by the Economic Times.
It is anticipated that Choksi will seek bail and an immediate release, potentially citing health concerns among other reasons.
Choksi, along with his nephew Nirav Modi—who remains in London awaiting extradition—are facing charges from both the CBI and the Enforcement Directorate (ED) for allegedly orchestrating a fraud exceeding Rs 13,500 crore against PNB in 2018. Their scheme reportedly involved leveraging letters of undertaking (LoUs) and foreign letters of credit (FLCs), facilitated through bribery of bank officials at PNB’s Brady House branch in Mumbai.
Both men departed India in January 2018, shortly before the widespread exposure of the financial irregularities within the country’s second-largest bank.
Just last month, the Belgian foreign ministry acknowledged Choksi’s presence within their borders to NDTV. A statement indicated they were “aware of his presence and attach great importance and attention to it,” although officials declined to elaborate on the specifics of the case. The ministry added that “the FPS Foreign Affairs continues to closely follow the developments in this important case.”
Reports suggest Choksi had been residing in Antwerp, Belgium, alongside his wife Preeti Choksi—a Belgian citizen—after securing a residency card. He holds citizenship in Antigua and Barbuda.
Prior to his arrest in Belgium, it was reported that Choksi left Antigua and Barbuda for cancer treatment with plans of relocating to Switzerland.
His whereabouts became a point of concern in 2021 when he initially went missing from Antigua before being located on the island nation of Dominica.
The government has made progress in recovering funds related to this case. As stated by Union Finance Minister Nirmala Sitharaman in December 2023, properties valued at Rs 2,565.90 crore have been either restored or sold off with the aim of repaying debts linked to individuals such as Choksi.
Key Facts:
- Mehul Choksi arrested in Belgium
- Wanted for a large-scale fraud against PNB
- Allegedly used LoUs and FLCs through bribery
- Fled India with his nephew, Nirav Modi
- Properties worth billions of rupees have been recovered.
“The FPS Foreign Affairs continues to closely follow the developments in this important case.”
