PNB Fraud: Mehul Choksi arrested in Belgium

PNB Loan Fraud Case: Fugitive diamond merchant Mehul Choksi has been arrested in Belgium following an extradition request made by India. Choksi is wanted by the Central Bureau of Investigation (CBI) and the Enforcement Directorate (ED) for his alleged involvement in the Rs 13,000 crore Punjab National Bank (PNB) loan scam.

Also Read : Agniveer Recruitment 2025 Key Changes and Introduction of a New Test

Mehul Choksi Tracked to Belgium After Acquiring Antiguan Citizenship

Mehul Choksi, a key accused in the Punjab National Bank (PNB) loan fraud case, has been living in Antwerp, Belgium, after acquiring a residency card. The Central Bureau of Investigation (CBI), through the Ministry of External Affairs, recently asked Belgian authorities to initiate the extradition process to bring Choksi back to India. Authorities believe Choksi previously lived in Antigua and Barbuda, where he obtained citizenship in 2017. His wife, Preeti, holds Belgian citizenship, which may have influenced his move.

After authorities detained Choksi in Belgium, the CBI sent a team of three to four senior officials to the country. These officials will complete the legal procedures and documentation for his extradition. This step marks significant progress in India’s efforts to prosecute Choksi under its legal system. The extradition process has become critical due to the complex international aspects of the case.

Authorities are prosecuting Choksi under the Fugitive Economic Offenders (FEO) Act. This law enables the Indian government to confiscate the properties of individuals who flee the country to avoid trial in economic crime cases. The Enforcement Directorate (ED) previously informed a special court in Mumbai that Choksi planned his escape well in advance and acquired Antiguan citizenship in November 2017, two months before authorities filed the FIR in the PNB case.

Also Read : Esports World Cup Unveils Historic $70 Million Prize Pool

Choksi Denies Allegations as ED Details Pre-Planned Escape

The Enforcement Directorate (ED) claims that Choksi left India on January 2, 2018, just days before the PNB scam came to light. The agency alleges that he fled the country under suspicious circumstances. However, Choksi, through his legal team, denies these allegations and argues that the agency has failed to provide solid proof to support its claims. Despite his denial, Indian authorities have continued their legal actions and filed multiple chargesheets against him.

Choksi, along with his nephew Nirav Modi, their employees, and some bank officials, allegedly carried out a massive loan fraud by fraudulently obtaining Letters of Undertaking (LoUs) and increasing Foreign Letters of Credit (FLCs) without following proper procedures at PNB’s Brady House branch in Mumbai. Choksi’s firm, Gitanjali Gems, played a major role in the scam. Meanwhile, UK authorities arrested Nirav Modi in 2019 based on a legal request from the ED and CBI. He remains in jail while contesting his extradition to India.