Fugitive diamond trader Mehul Choksi, wanted in connection with the Punjab National Bank (PNB) loan fraud case, has been arrested by Belgian authorities, sources have confirmed. The arrest, made at the request of Indian agencies including the Central Bureau of Investigation (CBI) and the Enforcement Directorate (ED), follows non-bailable warrants issued against him by Mumbai courts.
Choksi, who had been a fugitive since 2018, was detained on April 12 from a hospital in Belgium, where he had reportedly been undergoing treatment. His arrest came days after Indian authorities stepped up extradition efforts. Sources said that he had travelled to Europe, citing poor health, shortly after ED and CBI began pushing harder for his return. He was in hospital care when Belgian police took him into custody.
Sources said Choksi was planning to shift to Switzerland from Belgium for his treatment when he was arrested.
The action was initiated after the ED and CBI submitted extradition requests in September 2024. At the time, Choksi's lawyers argued that he was suffering from blood cancer and unfit for travel. However, Indian officials countered this claim in court, noting that if Choksi was capable of flying from Antigua to Belgium for medical treatment, he could also return to India, where adequate care was available.
Sources said that his arrest was triggered after Indian agencies reactivated extradition requests when the Interpol Red Notice against him was removed. Despite the deletion, the ED and CBI pursued a fresh request, which ultimately led to his capture in Belgium.
While Indian authorities are now working to bring him back to face trial, the extradition may be a prolonged process. Sources confirmed that Choksi is likely to pursue all available legal remedies in Belgium to resist deportation, setting the stage for a complex legal battle.
Choksi is accused of defrauding Punjab National Bank of over Rs 6,095 crore through a massive banking scam involving the fraudulent issuance of Letters of Undertaking (LOUs) and the manipulation of Foreign Letters of Credit (FLCs). Though the broader estimated fraud is pegged at over Rs 13,000 crore, investigative agencies have specifically built a case against Choksi based on the Rs 6,095 crore component linked directly to his operations.
The CBI and ED's case was built on testimonies and documents provided by key individuals, including Vipul Chitalia, the banking head of Choksi's Gitanjali Group; the group's finance team member, the late Deepak Kulkarni; and Gokulnath Shetty, the former Chief Manager at PNB.
Their statements and evidence helped the agencies unravel the extent of the conspiracy, detailing how the fraud was meticulously planned and executed with the intent to defraud the bank, followed by systematic laundering and layering of the funds.
Choksi's firm, Gitanjali Gems, has been named in multiple charge sheets filed by the ED, while the CBI has also filed corresponding cases accusing him, Nirav Modi, and others-including bank officials-of cheating, criminal conspiracy, and corruption.
In parallel, the ED has been working to have Choksi declared a Fugitive Economic Offender under the Fugitive Economic Offenders Act in a Mumbai court.
Meanwhile, his nephew and co-accused Nirav Modi remains in a London jail, where he continues to fight extradition to India.
Source: India Today