Fugitive diamond trader Mehul Choksi, a key accused in the Rs 13,000 crore Punjab National Bank (PNB) scam, has been arrested in Belgium, according to sources. The arrest, carried out on April 12 by Belgian authorities, was made at the request of Indian agencies, including the Central Bureau of Investigation (CBI) and the Enforcement Directorate (ED). Choksi had been on the run since 2018 and was declared wanted in connection with a Rs 6,095 crore fraud involving the fraudulent issuance of Letters of Undertaking (LOUs) and manipulation of Foreign Letters of Credit (FLCs).
Mehul Choksi was detained from a hospital in Belgium, where he had reportedly been undergoing treatment for blood cancer. He had been residing in the country for the past six months, allegedly preparing to travel to Switzerland for further medical care when Belgian police took him into custody. Indian authorities had reactivated their extradition efforts in September 2024, submitting fresh requests after an earlier setback when Interpol removed the Red Corner Notice against him.
The ED and CBI built their case against Mehul Choksi based on testimonies and documents from key witnesses, including Vipul Chitalia, banking head at Choksi’s Gitanjali Group; finance team member Deepak Kulkarni; and former PNB Chief Manager Gokulnath Shetty.
Mehul Choksi’s arrest comes at a critical juncture in the long-running investigation. Indian officials have argued that if he was well enough to travel from Antigua to Belgium for treatment, he is also fit to return to India, where suitable medical facilities exist. Choksi had earlier used his deteriorating health as a defense to avoid extradition.
Although Mehul Choksi has been arrested, his return to India may not be immediate. Sources indicate he plans to contest his extradition in Belgian courts and is likely to seek bail on medical grounds. He is also expected to raise past allegations of an attempted kidnapping by Indian agents in Antigua as part of his defense.
Despite these challenges, Indian agencies remain optimistic. Even if bail is granted, they believe he will not be permitted to return to Antigua. Deportation is also being explored as an alternative to formal extradition.
Meanwhile, Mehul Choksi’s nephew and co-accused Nirav Modi continues to fight extradition from the UK, where he remains in custody. The ED has also sought to have Choksi declared a Fugitive Economic Offender in an ongoing case in Mumbai. The arrest marks a significant breakthrough in India’s effort to bring back economic offenders and prosecute one of the biggest banking frauds in the country’s history.
