Financial crime: Mehul Choksi, arrested in Belgium, may be brought back to India
Virendra Pandit
New Delhi: Days after the 26/11 terror attack mastermind Tahawwur Rana was extradited from the US to India, another high-value accused, Mehul Choksi, is likely to be brought back from Belgium to face the long arm of the law in the country of his origin.
According to the media reports, the Belgian Justice Department on Monday confirmed that fugitive Indian businessman Mehul Choksi was arrested on April 12, and is currently being held in detention. India has also promptly introduced the request for the extradition of the biggest banking fraudster.
“The Belgian Federal Public Service of Justice can confirm that Mr. Mehul Choksi was arrested on Saturday 12th of April 2025. He is being detained in anticipation of further judicial proceedings. Access to his legal counsel has been assured,” it said.
The Belgian authorities refused to divulge more details, however, citing the standard operating procedures in individual cases.
Choksi, the 65-year-old fugitive diamond merchant who fled India on January 2, 2018, is wanted by the Central Bureau of Investigation (CBI) and the Enforcement Directorate (ED) for allegedly defrauding the public sector Punjab National Bank (PNB) of Rs 13,850 crore.
His nephew, Nirav Modi, was also involved with him in the fraud.
Choksi allegedly connived with his associates and PNB officials from 2014 to 2017 and fraudulently obtained Letters of Undertaking and Foreign Letters of Credit from PNB, resulting in a wrongful loss of Rs. 6097.63 crore to PNB.
Union Law Minister Arjun Ram Meghwal said Choksi’s arrest in Belgium is a victory of Indian diplomacy under the Modi government. “It is a matter of pride for India,” he told reporters.
Earlier today, the businessman’s lawyer, Vijay Aggarwal, argued that his client’s “human rights will be greatly affected” if he is extradited back to India.
Choksi’s defence team, he said, would challenge the extradition on two primary grounds: the political nature of the case and concerns about the proper treatment for Choksi’s health condition in India.
His arrest is a significant development in India’s long-running efforts to bring back the key conspirators in what remains the country’s biggest banking fraud.
Born on May 5, 1959, in Mumbai, Choksi is the former chairman of the Gitanjali Group, a major jewellery retailer once operating over 4,000 stores across India. He took over the family-run business from his father in 1985 and expanded it aggressively. A long-time player in the gem and jewellery trade, Choksi is also the maternal uncle of Nirav Modi, another key accused in the PNB scam, lodged in a UK jail.
The PNB scam came to light in early 2018 when it reported fraudulent issuance of Letters of Undertaking (LoUs) worth over Rs. 13,000 crores from its Brady House branch in Mumbai. These LoUs were used to secure overseas credit for Choksi and Modi’s companies – Gitanjali Gems, Diamond R US, Solar Exports, and Stellar Diamonds – which were later found to be shell firms. The LoUs were issued in violation of the RBI guidelines, with complicit PNB officials allegedly bypassing internal systems.
Investigations revealed that the scam was perpetrated fom 2014 to 2017. In March 2018, a special PMLA court issued non-bailable warrants against Choksi and others.
Nirav Modi, his wife Ami, brother Nishal, and Choksi were all named in the chargesheet filed by the CBI.
Choksi is accused of criminal conspiracy, cheating, corruption, money laundering and breach of trust. His firm allegedly caused a wrongful loss of Rs. 6,097.63 crore to PNB. He also defaulted on loans from other banks, including a USD 25.8 million default by a firm linked to his brother Chetan Choksi in Belgium.
The ED raided over 136 locations and seizing assets worth more than Rs. 2,500 crores, including jewellery, immovable properties, vehicles, and shares in both Indian and overseas entities linked to Choksi and his Gitanjali Group.
Three prosecution complaints have been filed by the ED, and Indian authorities have continued to push for his extradition ever since he fled the country.
Choksi’s escape story has seen multiple twists and turns. He became an Antiguan citizen in late 2017, months before the fraud surfaced, and fled India in January 2018, days before authorities began investigating the scam.
In 2021, he mysteriously disappeared from Antigua and Barbuda and resurfaced in Dominica, reportedly while trying to flee to Cuba by boat. However, Dominican courts blocked his repatriation. In 2023, Interpol controversially revoked the Red Notice against him, complicating extradition efforts.
Reports in 2024 suggested Choksi had relocated from Antigua to Belgium, where both his wife and extended family have roots. His daughter is also married to a diamond merchant based in Antwerp.
Following his arrest in Belgium, authorities may finally have an opening to bring Choksi back to India to face justice.
His nephew, Nirav Modi, remains in custody in the United Kingdom since his arrest in 2019. Despite exhausting all legal avenues, his extradition has yet to materialise.
