Fugitive diamond trader Mehul Choksi, wanted in connection with the ₹13,850 crore Punjab National Bank (PNB) loan fraud, has been arrested by Belgian police, confirmed officials from the Central Bureau of Investigation (CBI) on Monday.
The 65-year-old businessman, who had been living in Antwerp with his wife Preeti Choksi, a Belgian citizen, was taken into custody on Saturday based on two open-ended arrest warrants issued by a Mumbai court on May 23, 2018, and June 15, 2021.
Choksi is currently being held in a Belgian jail and is expected to move for bail citing ill health and other humanitarian grounds.
Choksi and Nirav Modi Accused of Defrauding PNB of Rs. 13,850 Crore
Choksi, along with his nephew Nirav Modi—who is currently awaiting extradition from the UK—is accused by the CBI and the Enforcement Directorate (ED) of orchestrating one of India’s biggest banking frauds by exploiting Letters of Undertaking (LoUs) and Foreign Letters of Credit (FLCs) through bribed PNB officials at the bank’s Brady House branch in Mumbai.
Both fled India in January 2018, just weeks before the massive fraud was uncovered, sparking national outrage and a wave of scrutiny on India’s banking system.
From Antigua to Belgium: Choksi’s Elusive Trail
Choksi, who had acquired citizenship of Antigua and Barbuda, initially fled India under the guise of seeking medical treatment. In 2021, he briefly went missing from Antigua, only to be found in Dominica, where his return to India was legally contested.
In December 2024, India’s Finance Minister Nirmala Sitharaman informed Parliament that properties worth ₹22,280 crore linked to fugitives like Choksi had been seized or sold to recover dues to public sector banks.
Belgian Authorities Monitoring Closely
Last month, the Belgian foreign ministry confirmed that Choksi was residing in Belgium and stated that they were “closely following the developments” related to the high-profile case. However, they declined to comment on individual cases citing confidentiality norms.
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