Belgian officials have captured Mehul Choksi, a fugitive diamond merchant who was wanted in relation to the loan fraud case against Punjab National Bank (PNB). The arrest comes after Mumbai courts issued non-bailable warrants against him, which were requested by Indian agencies such as the Enforcement Directorate (ED) and the Central Bureau of Investigation (CBI).
On April 12, Choksi, who had been on the run since 2018, was taken into custody from a Belgian hospital where he was allegedly receiving treatment. Days after Indian police intensified their extradition efforts, he was arrested. Shortly after the ED and CBI started to put further pressure on him to return, he had taken a trip to Europe, claiming ill health. When Belgian authorities arrested him, he was receiving medical attention at a hospital.
On fugitive Mehul Choksi’s arrest in Belgium, his Advocate Vijay Aggarwal says, “My client Mehul Choksi has been arrested in Belgium and at the moment, he is in custody. We will be starting the process of filing an appeal against this, and then, as a process of appeal, we will be requesting that he be pulled out of prison. The major ground for the plea is his ill health and that he is undergoing cancer treatment…”
He has been living in Belgium for the last six months and is presently being held at a detention facility there, according to sources. According to rumors, he is receiving treatment for blood cancer, and his health is reportedly getting worse. When he was imprisoned, Choosing was about to relocate from Belgium to Switzerland for more medical care.
The action was initiated after the ED and CBI submitted extradition requests in September 2024. At the time, Choksi’s lawyers argued that he was suffering from blood cancer and unfit for travel. However, Indian officials countered this claim in court, noting that if Choksi was capable of flying from Antigua to Belgium for medical treatment, he could also return to India, where adequate care was available.
His arrest was triggered after Indian agencies reactivated extradition requests following the removal of the Interpol Red Corner Notice against him. Despite that setback, the ED and CBI pursued a renewed request, which ultimately led to his capture in Belgium.
While Indian authorities are now working to bring him back to face trial, the extradition may be a prolonged process. Sources confirmed that Choksi is likely to pursue all available legal remedies in Belgian courts to resist deportation, and is expected to soon file for bail on medical grounds. He is also likely to raise the allegation of a past “kidnapping attempt” by Indian operatives in Antigua as part of his legal defence.
Despite these expected challenges, Indian agencies are hopeful that even if Choksi is granted bail, he will not be allowed to return to Antigua. India is also exploring deportation as a possible alternative route to bring him back.
Through a huge banking scheme that involved the fraudulent issue of Letters of Undertaking (LOUs) and the manipulation of Foreign Letters of Credit (FLCs), Choksi is accused of defrauding Punjab National Bank of over Rs 6,095 crore.
Investigative agencies have particularly constructed a case against Choksi based on the Rs 6,095 crore component directly tied to his operations, even though the overall estimated scam is likely to be above Rs 13,000 crore.
Testimonies and documents from important people, such as Gokulnath Shetty, the former Chief Manager at PNB; Vipul Chitalia, the banking head of Choksi’s Gitanjali Group; and the late Deepak Kulkarni, a member of the group’s finance team, formed the basis of the CBI and ED’s case. Their statements and evidence helped the agencies unravel the extent of the conspiracy, detailing how the fraud was meticulously planned and executed with the intent to defraud the bank, followed by systematic laundering and layering of the funds.
The CBI has filed related cases charging Choksi, Nirav Modi, and others—including bank officials—of corruption, criminal conspiracy, and cheating, while the ED has mentioned Choksi’s company, Gitanjali Gems, in numerous charge sheets.
At the same time, the ED has been trying to get Choksi listed in a Mumbai court as a Fugitive Economic Offender under the Fugitive Economic Offenders Act. Nirav Modi, his nephew and co-accused, is still detained in London and is fighting extradition to India.
