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Fugitive diamantaire Mehul Choksi, wanted in India for his alleged role in the massive ₹13,500 crore Punjab National Bank (PNB) fraud, has been arrested in Belgium on the basis of a formal extradition request by Indian authorities.
Choksi, who had been living in Antwerp with his wife Preeti Choksi, reportedly obtained an ‘F residency card’ in Belgium. In February, his lawyer informed a Mumbai special court that the former jeweller was undergoing cancer treatment in Belgium. Despite securing the withdrawal of a Red Corner Notice by Interpol, which previously restricted his global movement, Indian agencies including the Central Bureau of Investigation (CBI) and the Enforcement Directorate (ED) continued to pursue his extradition.
What is the PNB Scam Case Against Mehul Choksi?
The high-profile financial scam came to light in 2018, when the PNB accused Mehul Choksi and his firms, including Gitanjali Gems, of fraudulently obtaining letters of undertaking (LoUs) to access massive loans from overseas banks. The CBI later booked Choksi under charges of cheating, criminal conspiracy, and violations of the Indian Penal Code and the Prevention of Corruption Act.
Simultaneously, the Enforcement Directorate (ED) initiated a separate case under the Prevention of Money Laundering Act (PMLA), alleging that Choksi had siphoned off the funds to overseas accounts and shell companies. His nephew Nirav Modi is also a co-accused in the same scam.
Latest Developments in the Choksi Case
In December 2024, the CBI launched a fresh probe against Choksi, accusing him of diverting over ₹6,700 crore in another fraud involving misused loan funds. Furthermore, in February 2025, a special PMLA court in Mumbai approved the auction of 13 properties linked to Gitanjali Gems to prevent loss of value due to neglect.
The special judge SM Menjoge underscored the need to liquidate these assets as they were deteriorating in value without maintenance.
With Choksi’s arrest in Belgium, Indian authorities are optimistic about expediting the extradition process. However, legal complexities surrounding his medical condition and residency status may delay his return to India.
If extradited, Choksi will face trial under multiple Indian laws, including money laundering, cheating, and criminal conspiracy, marking a major step forward in India’s effort to bring fugitives of economic crimes to justice.
ALSO READ: ‘Great News’ PNB Scam Whistleblower Hails Mehul Choksi’s Arrest In Belgium, Urges Swift Extradition
