PNB bank loan 'fraud' case: Fugitive businessman Mehul Choksi arrested in Belgium

TOI Business Desk / TIMESOFINDIA.COM / Updated: Apr 14, 2025, 09:35 IST

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Fugitive diamond merchant Mehul Choksi, wanted in the Rs 14,000-crore Punjab National Bank fraud, has been arrested in Belgium based on India's extradition request. He is accused of colluding with bank officials to fraudulently obtain financial instruments, causing significant losses. Choksi's legal team is preparing to challenge the extradition, citing his medical condition as a key factor.

PNB bank loan 'fraud' case: Fugitive businessman Mehul Choksi arrested in Belgium

Fugitive businessman Mehul Choksi (File photo)

NEW DELHI: Fugitive diamond merchant Mehul Choksi, a key accused in the Rs 14,000-crore Punjab National Bank fraud case, was arrested on Saturday by Belgian authorities on India's extradition request.
Choksi’s arrest was based on two non-bailable warrants issued by a Mumbai court, dated May 23, 2018, and June 15, 2021, according to people familiar with the development.
Choksi is now preparing for a legal fight as his defence team prepares to seek bail and challenge efforts to extradite him to India.
His lawyers argue that there are valid grounds to oppose extradition, including his medical condition.
The 65-year-old fugitive diamond trader is wanted by the CBI and ED for his alleged role in defrauding PNB of nearly Rs 1,400 crore, along with his nephew Nirav Modi.
Reacting to the news of Choksi's arrest, the PNB scam whistle-blower Hariprasad SV said, "It's really great news. We are very glad for all those people who were cheated by Mehul Chowksi in India. It's unbelievable how he got caught in Belgium. It's also important that we not only get him back to India but also get back the money he looted, that is what India needs."
"Extradition is not going to be an easy task. His wallet is full, and he will employ the best advocates in Europe, as Vijay Mallya has been doing. It is not easy for India to get him back...

Even though he was caught in Antigua, he managed to get out of it as he had a fleet of lawyers. It's not going to be so easy for the government of India, but I hope the government succeeds this time," he added.
Choksi left India on January 2, 2018, initially travelling to the United States before settling in Antigua. He had acquired Antiguan citizenship in 2017, prior to fleeing the country.
In 2021, Choksi was arrested in Dominica under controversial circumstances. While authorities alleged he was trying to flee to Cuba, his legal team claimed he was kidnapped from Antigua. Despite India seeking his extradition, Dominica deported him back to Antigua.
Choksi later travelled to Belgium, reportedly to receive cancer treatment, where he has now been detained.
According to the agencies, Choksi, his company Gitanjali Gems, and others allegedly colluded with bank officials to fraudulently obtain Letters of Undertaking (LoUs) and enhance Foreign Letters of Credit (FLCs) without adhering to the required procedures.
This led to substantial wrongful losses for the bank.

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The TOI Business Desk is a vigilant and dedicated team of journalists committed to delivering the latest and most relevant business news from around the world to readers of The Times of India. The primary focus of the TOI Business Desk is to keep a watchful eye on the global business landscape, covering a wide spectrum of industries, markets, economic trends, in-depth analysis, exclusive reports and breaking stories that impact businesses and economies. With a mission to provide valuable insights and updates, the desk ensures that TOI readers are well-informed about the ever-changing and dynamic world of commerce and can navigate the complexities of the business world.

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