Mehul Choksi Arrested in Belgium: A Key Breakthrough in ₹13,000 Crore PNB Scam Case
Fugitive Indian businessman Mehul Choksi, a central figure in the infamous ₹13,000 crore Punjab National Bank (PNB) fraud, has been arrested in Belgium following a joint extradition effort by India’s Central Bureau of Investigation (CBI) and Enforcement Directorate (ED). This development comes years after he fled the country amidst one of India’s largest banking scandals, orchestrated alongside his nephew Nirav Modi and several complicit bank officials.
Mehul Choksi’s Arrest: Key Details
The 65-year-old was arrested based on two non-bailable warrants issued by Mumbai courts in March 2018 and June 2021, respectively. According to reports from The Economic Times, Choksi was planning to visit Switzerland for blood cancer treatment. His legal team has confirmed plans to appeal the arrest in Belgium, citing health concerns.
Who Is Mehul Choksi?
- Full Name: Mehul Chinubhai Choksi
- Date of Birth: May 5, 1959
- Origin: Mumbai, India
- Education: G.D. Modi College, Gujarat
- Profession: Former Chairman of Gitanjali Group, a now-defunct diamond and jewelry empire that once operated 4,000+ stores across India.
- Family: Married with one son and two daughters.
Choksi entered the gems and jewelry business in 1975 and took over Gitanjali Gems in 1985. Under his leadership, the company diversified beyond polished diamonds. His brother, Chetan Choksi, ran a Belgium-based diamond company, Diminco NV, which later defaulted on a $25.8 million loan, triggering lawsuits in Belgium and the UK.
What Was the ₹13,000 Crore PNB Scam?
The massive banking scam was uncovered in 2018, thanks to Bengaluru-based whistleblower Hari Prasad SV, who flagged discrepancies in company balance sheets in a letter to the PMO.
Investigations revealed that Choksi, Nirav Modi, and bank officials colluded to fraudulently obtain Letters of Undertaking (LoUs) and Foreign Letters of Credit (FLCs). These documents were issued without proper authorization, cash margins, or logging in PNB’s core banking system—allowing the scam to remain undetected during audits.
Key Scam Highlights:
- Misused LoUs worth ₹13,000 crore
- Loans from overseas banks with no collateral
- No sanctioned limits or internal audit flags
- Resulted in a ₹6,344 crore financial loss for PNB
- Entire exposure marked as Non-Performing Asset (NPA) as per RBI norms
Choksi’s Escape and Life Abroad
In early 2018, both Choksi and Nirav Modi fled India. While Modi was later arrested in London, Choksi acquired Antiguan citizenship in 2017 and settled there.
In 2021, Choksi allegedly attempted to flee to Cuba but was caught in Dominica, where his lawyers claimed he had been kidnapped. He was returned to Antigua, where he continued to fight extradition.
In a surprising move, Interpol revoked Choksi’s Red Notice in 2023, even though Indian authorities pushed for his extradition. Later, he traveled to Belgium under the guise of medical treatment, and recently obtained a Belgian F-residency permit with forged documents. He was reportedly preparing to settle in Geneva, Switzerland.