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After years on the run, Mehul Choksi, the fugitive Indian businessman wanted for one of the biggest banking scams in India’s history, has been arrested by Belgian authorities. Choksi, the man behind the ₹6,000 crore Punjab National Bank (PNB) fraud, had been evading Indian law enforcement since 2018.
His arrest in Belgium over the weekend marks a major breakthrough in India’s pursuit of justice in the high-profile PNB scam, which rocked the country’s banking sector. Authorities in India are now preparing for what could be a complicated legal battle over his extradition.
On the Run Since 2018: How It All Began
Mehul Choksi fled India in 2018, just before the PNB fraud case came to light. According to investigators, the fraud took place between 2014 and 2017, during which Choksi allegedly conspired with bank officials to obtain credit using fake guarantees known as Letters of Undertaking (LoUs) and Foreign Letters of Credit. These fraudulent transactions caused a loss of ₹6,097.63 crore to PNB.
Choksi initially flew to the United States after leaving India but later made his way to the Caribbean island nation of Antigua and Barbuda. Interestingly, he had already acquired Antiguan citizenship in 2017, a year before the scandal broke out publicly.
Family Ties and Extradition Troubles
Choksi’s nephew, Nirav Modi—also accused in the same PNB fraud case—was arrested in London in May 2019 by the Metropolitan Police. Despite losing all legal options to fight his extradition, Nirav Modi continues to be held in the UK. His extradition has been delayed due to ongoing legal proceedings.
In Choksi’s case, Interpol surprisingly removed its red corner notice against him in March 2023, citing procedural reasons. Around 2024, Mehul and his wife, Preeti Choksi, reportedly left Antigua and relocated to Belgium, where Preeti, a Belgian citizen, has family roots. Choksi also has extended family connections in the country.
From Antigua to Belgium: A Quiet Shift
Local media in Antigua had hinted earlier this year that the Choksis were considering settling down in Geneva, Switzerland. However, more recent reports confirmed that the couple is currently living in Belgium. Two weeks ago, both Mehul and Preeti were granted F-residency cards—long-term residency status in Belgium.
In court filings in India, Choksi’s lawyers disclosed that he is receiving treatment for blood cancer in Antwerp, a city in northern Belgium known for its diamond trade—a detail that has not gone unnoticed, given Choksi’s background as a prominent diamantaire.
Arrest Confirmed in Belgium
According to sources familiar with the matter, Choksi was arrested on Saturday in Belgium after authorities confirmed his presence in the country. While officials have not made an official announcement yet, sources say that steps are already being taken to begin the extradition process to bring him back to India.
However, this may not be straightforward. Choksi’s legal team has already sprung into action, preparing to seek bail and challenge the extradition request in Belgian courts.
Legal Defense Strategy: Health and Human Rights
Choksi’s lawyers argue that their client should not be extradited due to serious health concerns. “He is undergoing treatment for blood cancer,” his legal representatives told a special court in Mumbai earlier this year. They are also expected to raise other legal arguments, possibly related to human rights and the absence of a fair trial, to delay or stop the extradition.
“Choksi has strong reasons to challenge the extradition request, citing his health condition, among other arguments,” said a person familiar with the legal strategy.
Enforcement Directorate’s Crackdown in India
Back in India, the Enforcement Directorate (ED) has been relentless in its investigation into Choksi’s financial empire.
Search operations were carried out at more than 136 different locations across the country. Authorities seized valuables, including jewellery linked to Choksi’s company—the Gitanjali Group—worth ₹597.75 crore. The ED has also attached assets belonging to Choksi and his companies totaling ₹1,968.15 crore.
These attached properties include real estate both in India and overseas, luxury vehicles, multiple bank accounts, factories, shares in listed companies, and more. In total, the ED has seized or attached assets worth ₹2,565.90 crore in connection with the case.
So far, three prosecution complaints (the equivalent of charge sheets) have been filed in court against Choksi and his companies.
