Fugitive Diamond Trader Mehul Choksi Detained in Belgium

Belgian authorities have apprehended Mehul Choksi, the Indian diamond merchant accused of orchestrating a massive financial scam involving Punjab National Bank (PNB). The arrest, confirmed by sources close to India’s Central Bureau of Investigation (CBI), follows a formal extradition request from Indian officials seeking to bring Choksi to justice for his alleged role in a fraud exceeding ₹13,500 crore (approximately $1.8 billion USD).

Choksi, who fled India in 2018 amid investigations into the PNB scam, had been residing in Antwerp with his wife, Preeti Choksi, after obtaining a residency card in Belgium. Authorities detained the 65-year-old on Saturday, reportedly acting on two open-ended arrest warrants issued by a Mumbai court. The CBI, alongside India’s Enforcement Directorate (ED), has been pursuing Choksi for years, accusing him of colluding with his nephew, Nirav Modi, and bank officials to defraud PNB through fraudulent letters of undertaking.

The PNB scandal, one of India’s largest banking frauds, came to light in 2018 when the bank reported unauthorised transactions at its Mumbai branch. Choksi, the former managing director of Gitanjali Gems, is alleged to have played a central role in the scheme, which caused significant losses to the state-run lender. Indian authorities have since seized assets worth over ₹2,500 crore linked to Choksi, with ongoing efforts to recover additional funds. In December 2024, Union Finance Minister Nirmala Sitharaman told parliament that properties worth Rs 2,565.90 crore had been restored or sold off to pay back the debts of wanted individuals like Choksi.

Sources indicate that Choksi may challenge extradition, citing health concerns. His legal team has previously claimed he suffers from chronic illnesses, including blood cancer, requiring treatment in Belgium. However, Indian agencies are prepared to counter any bail attempts, emphasising the severity of the charges against him, which include fraud and money laundering. Choksi’s detention follows renewed diplomatic efforts between India and Belgium, with the latter confirming its commitment to addressing the case with urgency. While legal proceedings in Belgium could delay extradition, Indian officials remain optimistic about securing Choksi’s return to face charges in Mumbai.