Mehul Choksi Arrested in Belgium
Analysis based on 24 articles · First reported Apr 14, 2025 · Last updated Apr 14, 2025
The arrest of Mehul Choksi, a key figure in the Punjab National Bank (PNB) fraud, is a positive development for the Indian banking sector, potentially aiding in the recovery of defrauded funds and reinforcing regulatory oversight. However, the protracted legal battle for his extradition from Belgium could delay the full resolution and financial impact on affected banks like PNB, State Bank of India, Axis Bank, and ICICI Bank.
Mehul Choksi, a fugitive diamond merchant and owner of Gitanjali Gems, has been arrested in Belgium on April 11, 2025, following an extradition request from India. Choksi is a prime accused in the $2-billion Punjab National Bank (PNB) fraud, where he and his nephew, Nirav Modi, allegedly defrauded PNB of over Rs 14,000 crore by obtaining fraudulent Letters of Undertaking and Foreign Letters of Credit. After the scam surfaced in 2018, Mehul Choksi fled India, initially to the United States, then settling in Antigua and Barbuda after acquiring citizenship there in 2017. He later relocated to Belgium, where he obtained an 'F Residency Card' in November 2023. Indian agencies, including the United States — Federal Bureau of Investigation (CBI) and the India — Enforcement Directorate (ED), have been relentlessly pursuing his return, issuing non-bailable warrants and attaching assets worth Rs 2,565 crore linked to Mehul Choksi. His arrest in Belgium marks a significant step towards his potential extradition to India, although his legal team is preparing to challenge the extradition request, citing health reasons.
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