Mehul Choksi held in Belgium: Timeline of events leading to his arrest

Fugitive diamantaire Mehul Choksi has been arrested in Belgium for his alleged involvement in the ₹13,850 crore PNB bank loan fraud case

Fugitive jeweller Mehul Choksi, wanted in connection with the ₹13,850 crore Punjab National Bank (PNB) bank loan fraud case, has been arrested in Belgium. The Indian government had submitted an extradition request before his arrest, but Reuters reported that Choksi will likely contest it citing health concerns.

 

In 2018, Punjab National Bank, India's second-largest state-owned bank by assets, revealed it had uncovered an alleged ₹13,850 fraud at one of its Mumbai branches. The bank subsequently filed criminal complaints with federal investigators against several parties, including billionaire jeweller Nirav Modi and his uncle Choksi, who was the managing director of Gitanjali Gems, accusing them of defrauding the bank.

 

 

Here is a brief timeline of events leading to Mehul Choksi's arrest:

 

- Mehul Choksi fled India in 2018, first moving to the United States before establishing residence in Antigua. In 2017, a year before his departure, he had obtained Antiguan citizenship.

 

-The Metropolitan Police in London arrested Choksi's nephew, Nirav Modi, in May 2019. Despite exhausting all legal options for extradition, he remains under arrest in the United Kingdom.

 

- Choksi was arrested in Dominica in May 2021, allegedly trying to flee to Cuba, although his counsel had claimed that he had been kidnapped from Antigua.

 

-Interpol revoked the red notice against Mehul Choksi in March 2023. Choksi and his wife reportedly moved from Antigua to Belgium in 2024.

 

-According to Antiguan media reports, Choksi and his wife, Preeti were considering settling in Geneva. Earlier this year, Choksi's legal team informed a special court in Mumbai that he was currently receiving treatment for blood cancer in Antwerp, Belgium.

 

-Two weeks ago, Mehul and Preeti Choksi  acquired F-Residency cards in Belgium. Preeti, who holds Belgian citizenship, has family connections in the country, as does Choksi's extended family.

 

- Belgian authorities arrested Mehul Choksi on Saturday, April 12, after confirming his presence in the country.  Media reports indicate his defence team intends to apply for bail and will oppose his extradition.

 

What is the PNB bank loan fraud case?

 

A special PMLA court issued non-bailable arrest warrants against Choksi and his nephews Nirav Modi and Neeshal Modi in March 2018. They are accused of conspiring with PNB Bank officials to perpetrate fraud against the bank to the tune of Rs 13,850 crore.

 

Officials at PNB Bank's Brady House branch in Fort, Mumbai, allegedly produced fraudulent Letters of Undertaking (LoUs). These LoUs were established for Indian bank branches to facilitate pearl imports for one year, despite Reserve Bank of India (RBI) regulations specifying a maximum period of 90 days from the shipping date.