Fugitive Diamond Merchant Mehul Choksi Arrested in Belgium on India’s Extradition Request
Key Highlights:
NEW DELHI, April 14, 2025 (Mehul Choksi arrested) — In a major development in India’s fight against financial fugitives, fugitive diamond merchant Mehul Choksi was arrested on Saturday in Belgium, based on a formal extradition request from India.
Choksi, a central figure in the ₹14,000-crore Punjab National Bank (PNB) scam, was detained by Belgian authorities after two non-bailable warrants issued by a Mumbai court — dated May 23, 2018, and June 15, 2021 — were validated.
India’s Long Legal Pursuit Comes Closer to Conclusion
Indian intelligence agencies and the Ministry of External Affairs had reportedly tracked Choksi’s movements over the past year. After confirming his presence in Belgium, the Indian government formally asked local authorities to begin extradition proceedings.
Choksi was allegedly planning to travel to Switzerland for medical treatment at a cancer hospital, officials familiar with the case revealed.
The PNB Scam: India’s Largest Banking Fraud
Choksi, along with his nephew Nirav Modi, is accused of defrauding Punjab National Bank’s Brady House branch in Mumbai by fraudulently acquiring Letters of Undertaking (LoUs) and enhancing Foreign Letters of Credit (FLCs) without following due procedures.
The scam came to light in early 2018, triggering a nationwide outrage and a multi-agency investigation involving the Enforcement Directorate (ED) and the Central Bureau of Investigation (CBI).
Key allegations include:
- Collusion with PNB bank officials
- Use of forged documents to secure overseas credit
- Large-scale diversion of funds to dummy companies abroad
- Money laundering through multiple shell firms
Choksi’s Escape and Citizenship Loophole
Following the outbreak of the scam, Choksi fled India and later acquired citizenship in Antigua and Barbuda, where he lived for several years.
In 2021, he was allegedly kidnapped and briefly detained in Dominica, triggering diplomatic and legal tussles. However, with the latest arrest in Belgium, India is closer than ever to securing his return.
CBI and ED React to Arrest
Officials from both the CBI and ED confirmed the arrest late Saturday night and hailed the development as a major victory in India’s efforts to bring economic fugitives to justice.
“This arrest marks a turning point in the long-standing extradition process. We are coordinating with Belgian authorities to ensure his return to India,” a senior official from the CBI said.
Next Steps in the Extradition Process
Legal teams in India and Belgium will now coordinate on:
- Presenting Choksi before a Belgian magistrate
- Legal verification of India’s extradition documents
- Addressing potential appeals or challenges by Choksi’s legal team
If cleared, Choksi could be returned to India within weeks or months, depending on the complexity of proceedings.
Nirav Modi’s Parallel Extradition Case
While Mehul Choksi’s arrest is a breakthrough, his nephew Nirav Modi remains in the UK, where extradition proceedings are ongoing. The duo is said to have siphoned off thousands of crores from Indian banks through fraudulent LoUs and shell companies.
India’s Crackdown on Economic Offenders Tightens
With Mehul Choksi arrested in Belgium, Indian law enforcement has achieved a significant win in the fight against high-profile financial crime. The case underscores the government’s resolve in pursuing defaulters across borders and ensuring accountability in cases of large-scale financial fraud.
As the extradition process unfolds, the country now waits to see one of its most wanted fugitives face the Indian judicial system.
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