New Delhi/Brussels, April 14: In a major breakthrough, fugitive diamantaire Mehul Choksi, a key accused in the ₹13,000 crore Punjab National Bank (PNB) scam, has reportedly been arrested in Belgium, according to sources from the Enforcement Directorate (ED). The arrest marks a significant milestone in one of India's biggest banking fraud investigations.Choksi, who had been on the run since 2018, is believed to have been detained by Belgian authorities based on a red corner notice and coordinated efforts involving Interpol and Indian agencies.
The Past: A Scam That Shook India
The PNB scam, unearthed in early 2018, involved Choksi and his nephew Nirav Modi, who allegedly used fraudulent Letters of Undertaking (LoUs) issued by Punjab National Bank to siphon off over ₹13,000 crore from the Indian banking system.At the time, Choksi was heading Gitanjali Gems Ltd., and was one of the most prominent jewelers in India. Investigations revealed that he used his close links with bank officials to obtain fake LoUs without proper collateral or documentation. These LoUs were used to obtain credit from overseas branches of Indian banks.Just before the scam became public, Choksi fled India and acquired citizenship in Antigua and Barbuda in late 2017, triggering a long and complex extradition battle.
Arrest in Belgium
Choksi’s arrest in Belgium comes after years of diplomatic and legal efforts by Indian authorities to bring him to justice. The ED and the CBI had filed multiple charge sheets against him under the Prevention of Money Laundering Act (PMLA) and the Indian Penal Code (IPC).“We have received information confirming his detention in Belgium. Further legal steps are being taken to secure his extradition to India,” said a senior ED official, speaking on condition of anonymity.Indian agencies are now in active touch with Belgian counterparts to confirm identity, gather evidence, and initiate formal extradition proceedings.
The Future: Road to Justice
Choksi’s arrest opens a potential path for India to finally bring the fugitive back for trial. If extradited, he could face multiple charges, including criminal conspiracy, cheating, breach of trust, and money laundering. His testimony may also impact pending cases against co-accused Nirav Modi, who remains in UK custody fighting extradition.Legal experts say the Belgium arrest could accelerate the PNB scam trials, which have remained partially stalled due to the absconding accused. If brought back, Choksi's interrogation might uncover deeper links and beneficiaries of the fraud.
For now, the arrest is seen as a victory for Indian enforcement agencies, who have been under public pressure to recover defrauded funds and bring white-collar criminals to justice.
with All Agency Inputs
