Mehul Choksi detained in Belgium; India initiates extradition process

The fugitive diamantaire, wanted in the infamous Punjab National Bank fraud case, was granted residency in Belgium on November 15, 2023

Mehul Choksi, the fugitive diamond merchant implicated in the ₹13,850 crore Punjab National Bank (PNB) fraud, was arrested in Belgium on Saturday and is currently in jail, according to media reports.

 

Reports suggest that Indian authorities confirmed the news on Monday morning and have initiated extradition proceedings.

 

While taking Mehul Choksi into custody, the police cited two open-ended arrest warrants issued by a Mumbai court, dated May 23, 2018, and June 15, 2021, according to a report by The Economic Times.

 

He is likely to apply for bail and seek immediate release, citing ill health and other grounds. 

Speaking to the news agency ANI, PNB scam whistleblower Hariprasad SV termed it as "great news" not only for India but for all those who were cheated by him.

 

"Wow, Mehul Choksi getting arrested in Belgium is great news not only for India but also for all those who got cheated by him. The government must bring him back to India as soon as possible, and justice must be delivered," he said.

 

"Apart from bringing him back, the most important thing is to get back all those billions of dollars he looted from India and stashed anywhere in the world. Hopefully, the Government of India will succeed this time. Great news," Hariprasad said. 

 

The 65-year-old Choksi was reportedly residing in Antwerp, Belgium, with his wife Preeti Choksi, a Belgian citizen. He was granted an ‘F Residency Card’ by Belgian authorities on November 15, 2023.

 

Choksi and his nephew Nirav Modi have been accused of defrauding PNB of ₹13,850 crore — one of the biggest frauds in Indian banking history.

  The Enforcement Directorate (ED) has alleged that Mehul Choksi, along with his company Gitanjali Gems and others, committed the offence of cheating PNB by fraudulently obtaining letters of undertaking (LOUs) and getting foreign letters of credit (FLCs) enhanced in collusion with certain bank officials, without adhering to the prescribed procedures. This, the agency said, resulted in wrongful losses to the bank.  So far, the ED has filed three charge sheets against Choksi. The Central Bureau of Investigation (CBI) has also filed similar charge sheets in the case.