Fugitive Mehul Choksi is wanted in India. Authorities accuse him of playing a role in the ₹13,500-crore Punjab National Bank (PNB) loan fraud case. He has been arrested in Belgium after a formal extradition request by Indian authorities. The arrest was carried out on Saturday, according to sources cited by PTI.
Background of the Case
Mehul Choksi founded Gitanjali Gems. He is accused of orchestrating one of India’s biggest banking scams. His nephew Nirav Modi was involved with him. The scam involved fraudulently securing Letters of Undertaking (LoUs) from PNB to secure credit from overseas banks. Nirav Modi is currently imprisoned in London, still contesting his extradition to India.
Relocation and Arrest
Choksi was earlier residing in Antigua and Barbuda. He moved to Antwerp, Belgium, where he reportedly obtained an ‘F Residency Card’. He allegedly submitted false documents. Choksi also concealed his Indian and Antiguan citizenships from Belgian authorities during his residency application. Indian investigative agencies pushed for his extradition. These include the Enforcement Directorate (ED) and the Central Bureau of Investigation (CBI). This push occurred after the Interpol Red Notice against him was withdrawn.
Ongoing Legal Proceedings
A special court in Mumbai has been listening to the ED’s plea. They want to declare Choksi a Fugitive Economic Offender (FEO). This has been ongoing since 2018. Declaring him an FEO would allow Indian authorities to seize his assets under the PMLA (Prevention of Money Laundering Act). Nirav Modi was declared an FEO in 2019.
Reports suggest Choksi intended to move to Switzerland, allegedly for cancer treatment. His lawyer informed a Mumbai court earlier this year that he was undergoing medical treatment in Belgium. This arrest is a significant step. It advances India’s efforts to bring back economic offenders. These offenders fled the country after high-profile financial crimes.
