In a major breakthrough in the Punjab National Bank (PNB) scam case, fugitive Indian businessman Mehul Choksi was arrested in Belgium by local law enforcement authorities on Saturday, acting on a request from India’s Central Bureau of Investigation (CBI), according to sources.
Choksi, 65, has been on the run since January 2018, after allegedly defrauding PNB of ₹13,850 crore through fraudulent issuance of Letters of Undertaking and Foreign Letters of Credit in connivance with bank officials and associates. He had acquired Antiguan citizenship in 2017 before fleeing the country.
Arrest and Extradition Efforts
Sources confirm that Belgian authorities verified Choksi’s presence in the country, leading to his detention. Preparations for his extradition to India are reportedly underway.
However, Choksi’s defence team is gearing up to challenge the extradition, citing his health issues, including treatment for blood cancer, and legal protections due to his residency in Belgium. Two weeks ago, Choksi and his wife, Preeti Choksi, obtained F Residency Cards in Belgium. Preeti is a Belgian citizen, and the couple reportedly relocated from Antigua to Belgium in 2024.
Past Escapes and Investigations
Choksi previously claimed he was kidnapped from Antigua and taken to Dominica in 2021, allegedly en route to Cuba. Despite India’s attempt at extradition, Dominica deported him back to Antigua. His legal team used the Interpol Red Notice revocation in March 2023 to support his claim of political persecution.
The Enforcement Directorate (ED) has so far attached and seized assets worth ₹2,565.90 crore, including:
- Jewellery and valuables worth ₹597.75 crore
- Movable/immovable assets worth ₹1,968.15 crore
- Factory units, vehicles, shares, and overseas properties
The ED has filed three prosecution complaints in the case.
Connection to Nirav Modi
Choksi’s nephew, Nirav Modi, also accused in the scam, was arrested in the UK in May 2019. Although he lost his extradition appeal, Nirav Modi continues to be held in a UK jail.
What’s Next?
The extradition proceedings in Belgium could become a protracted legal battle, with Choksi’s team expected to move for bail and oppose extradition. The Indian government remains determined to bring him back to face justice in what is one of the country’s largest bank fraud cases.
The arrest of Choksi marks a significant development in India’s global effort to bring back economic offenders under its Fugitive Economic Offenders Act and through bilateral cooperation.