Digital News Guru National Desk:
Mehul Choksi, a prominent Indian diamond trader implicated in one of the nation’s largest financial scandals, was arrested in Belgium on April 12, 2025, following an extradition request from India. This development marks a significant milestone in India’s pursuit of justice concerning the Rs 13,000 crore Punjab National Bank (PNB) loan fraud case.
Background of the PNB Fraud Case
In 2018, Punjab National Bank, India’s second-largest state-run lender, uncovered a massive fraud involving the illicit issuance of Letters of Undertaking (LoUs) and Foreign Letters of Credit (FLCs). The scam implicated several entities, including Mehul Choksi and his nephew, Nirav Modi, both renowned diamond merchants. The fraudulent activities led to substantial financial losses for PNB, shaking the foundations of India’s banking sector.
Mehul Choksi’s Flight and Subsequent Developments
Prior to the exposure of the fraud, Mehul Choksi fled India in January 2018, shortly before the criminal complaint was filed. He initially took refuge in Antigua and Barbuda, obtaining citizenship there. However, recent investigations traced him to Antwerp, Belgium, where he had reportedly sought medical treatment.
Legal Proceedings and Extradition Efforts
Indian authorities, including the Central Bureau of Investigation (CBI) and the Enforcement Directorate (ED), have been actively pursuing Choksi’s extradition. In early 2025, the CBI, through the Ministry of External Affairs, formally requested Belgium to initiate extradition proceedings against Choksi. This request was bolstered by arrest warrants issued by a Mumbai special court in 2018 and 2021.
Belgian authorities acted swiftly, arresting Choksi on April 12, 2025. The Belgian Federal Public Service of Justice confirmed his detention and acknowledged the receipt of India’s extradition request. Choksi’s legal team, however, indicated plans to appeal his detention, citing ongoing cancer treatment and concerns over prison conditions in India.
Choksi’s legal team is expected to challenge the extradition on grounds related to his health and concerns about prison conditions in India. His lawyer, Vijay Aggarwal, stated that an appeal will be filed for his release, citing ongoing cancer treatment and arguing that Choksi poses no flight risk.
Reactions and Implications
The arrest has elicited positive reactions from Indian officials. Union Law Minister Arjun Ram Meghwal hailed the development as a success for India’s diplomatic efforts, emphasizing the government’s commitment to bringing financial wrongdoers to justice.
Similarly, Minister of State for Finance Pankaj Chaudhary described Choksi’s arrest as a significant achievement, aligning with Prime Minister Narendra Modi’s stance that those who embezzle public funds will face repercussions.
The extradition of Mehul Choksi is pivotal not only for recovering the defrauded amounts but also for reinforcing the integrity of India’s financial institutions. It sends a strong message about the nation’s resolve to hold economic offenders accountable, irrespective of their global whereabouts.
Looking Ahead
As legal proceedings unfold, the focus will be on ensuring a fair trial and the swift return of the embezzled funds. The case also underscores the importance of international cooperation in combating financial crimes, highlighting the role of diplomatic channels and legal frameworks in addressing such complex issues.
Conclusion
Mehul Choksi, the fugitive diamond trader implicated in India’s Rs 13,000 crore Punjab National Bank (PNB) fraud case, has been arrested in Belgium following an extradition request from India. Belgian authorities confirmed his detention on April 12, 2025, and are currently processing the extradition proceedings.
Choksi, 65, had been residing in Antwerp, Belgium, after obtaining residency there. Prior to this, he had fled India in 2018, shortly before the PNB fraud case became public. His arrest comes after years of legal efforts by Indian authorities to bring him to justice.
The PNB fraud case involves the alleged fraudulent issuance of Letters of Undertaking (LoUs) and Foreign Letters of Credit (FLCs), leading to massive financial losses for the bank. Choksi, along with his nephew Nirav Modi, is accused of orchestrating the scam. Nirav Modi was arrested in the UK in 2019 and is currently contesting extradition to India.
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