The recent arrest of fugitive diamond merchant Mehul Choksi in Belgium has been hailed as a major step toward justice by Bengaluru-based entrepreneur Hari Prasad, who had first raised red flags about the scam in 2016.
Calling the arrest “great news not only for India but also for all those who got cheated by him,” Prasad emphasized the urgency of bringing Choksi back to India.
“The government must bring him back to India as soon as possible, and justice must be delivered,” he said.
Prasad also stressed the importance of recovering the stolen funds.
“Apart from bringing him back, the most important thing is to get back all those billions of dollars he looted from India and stashed anywhere in the world. Hopefully, the Government of India will succeed this time. Great news,” he added.
It was on July 26, 2016, that Prasad had written to the Prime Minister’s Office (PMO), flagging potential large-scale financial fraud. His communication highlighted suspicious inconsistencies in balance sheets that hinted at wrongdoing.
Meanwhile, sources have confirmed that Choksi was arrested in Belgium on Saturday, following confirmation of his presence by local authorities. Preparations are currently underway for his extradition to India.
However, Choksi is gearing up for a legal battle. His defence team is expected to move for bail and plans to oppose extradition, citing his health condition and other legal arguments.
The 65-year-old fugitive, who fled India on January 2, 2018, is wanted by both the Central Bureau of Investigation (CBI) and the Enforcement Directorate (ED) for his alleged role in defrauding Punjab National Bank (PNB) of Rs 13,850 crore. His nephew, Nirav Modi, is also implicated in the same scam.
Choksi initially travelled to the United States before settling in Antigua, having acquired Antiguan citizenship in 2017. In a dramatic turn, he was later arrested in Dominica under controversial circumstances, with claims of kidnapping surfacing from his legal team. Dominica eventually deported him back to Antigua, even as India pushed for his extradition.
In 2024, Choksi reportedly relocated to Belgium for cancer treatment, where he has now been arrested.
From 2014 to 2017, Choksi allegedly worked in collusion with associates and PNB officials, fraudulently obtaining Letters of Undertaking and Foreign Letters of Credit, causing a wrongful loss of Rs 6097.63 crore to the bank. The scale of the scam has made it one of India’s largest banking frauds in recent memory.