Mehul Choksi Arrested in Belgium in Connection with PNB Scam India Seeks Extradition

Fugitive diamond trader Mehul Choksi, wanted in connection with the massive Punjab National Bank (PNB) fraud case, has been arrested by Belgian police, his lawyer confirmed on Monday. The 65-year-old businessman, who had been on the run since 2018, was taken into custody on Saturday and is currently being held in jail in Belgium.

Choksi’s arrest marks a major development in the long-running investigation into one of India’s biggest financial frauds, which allegedly involved the defrauding of PNB to the tune of over ₹13,500 crore. Choksi, along with his nephew Nirav Modi, is accused of orchestrating the scam by illegally obtaining letters of undertaking (LoUs) and foreign letters of credit (FLCs) through bribery and collusion with officials at PNB's Brady House branch in Mumbai.

Choksi’s legal counsel, Vijay Aggarwal, confirmed the arrest and announced their intention to challenge the detention in a Belgian court. "We will be filing an application against his arrest and also oppose India's extradition request. My client is not a flight risk. He is extremely sick and undergoing treatment for cancer," Aggarwal told reporters, raising concerns about Choksi's health as a defense strategy.

Choksi and Nirav Modi both fled India in January 2018, just weeks before the fraud was uncovered. In the years since, Indian authorities, including the Central Bureau of Investigation (CBI) and the Enforcement Directorate (ED), have pursued them through multiple legal channels, issuing Interpol Red Notices and initiating extradition proceedings. Modi is currently fighting extradition from the United Kingdom, where he has been detained since 2019.

The arrest comes just weeks after the Belgian foreign ministry confirmed to NDTV that Choksi was present in Belgium. In a written response, the ministry acknowledged his presence in the country and noted that they were closely monitoring the matter. "Belgium attaches great importance and attention to the case," the ministry stated.

The PNB fraud case has continued to be a symbol of corporate and regulatory failure in India's banking system. Investigators allege that Choksi’s company, Gitanjali Gems, and other associated entities used fraudulently obtained LoUs to access credit from overseas branches of Indian banks without any collateral or due diligence, resulting in massive losses to the banking sector.

The Indian government has intensified efforts in recent months to bring back high-profile economic offenders. Authorities are now working through diplomatic and legal channels to expedite Choksi’s extradition from Belgium. Officials from the Ministry of External Affairs and the Ministry of Home Affairs are expected to coordinate closely with Belgian authorities to ensure that the legal procedures are followed swiftly.

If extradited, Choksi will face multiple charges in India, including criminal conspiracy, cheating, corruption, money laundering, and criminal breach of trust. Both Choksi and Modi have denied any wrongdoing and have claimed they are victims of political persecution.

The arrest has reignited public and political interest in the PNB scam case, with many calling for swift justice and stricter banking regulations to prevent similar frauds in the future. As legal proceedings unfold in Belgium, Choksi’s fate now lies in the hands of the Belgian judiciary, which will determine whether he can be sent back to India to face trial.