Mehul Choksi Arrested: India Moves Closer to Extradition in PNB Scam Case

The long arm of law may finally be catching up with fugitive diamond trader Mehul Choksi, a main accused in the ₹13,850-crore Punjab National Bank (PNB) scam. In a major breakthrough Belgian cops allegedly nabbed Choksi in Antwerp at New Delhi's Central Bureau of Investigation (CBI) request. This is a significant development in India’s attempt to return the businessman, who left the country in 2018 before the gigantic fraud was discovered.

Choksi’s extradition follows months of international coordination that saw Indian agencies pursue him across several countries. Now, as extradition proceedings are under way, questions loom: Will he finally be tried in India? Or will loopholes and health claims derail justice yet again?

Let’s parse the new developments, the astonishing scale of the PNB scam and what this arrest means for India’s battle against financial fraudsters.

Arrest: How Was Mehul Choksi Caught?

The Belgian police have arrested diamond merchant Mehul Choksi, one of the two prime accused in the $2-billion Punjab National Bank (PNB) fraud, people in the know told ET. Choksi was arrested on Saturday at the behest of the Central Bureau of Investigation (CBI) and is still in… pic.twitter.com/rfBBIzSmyb

— Vineet (@cozyduke_apt29) April 14, 2025

Belgian police had arrested fugitive businessman Mehul Choksi on Saturday (12 April 2025), based on his two Interpol Red Corner Notices and two warrants issued by Mumbai courts in 2018 and 2021, reports said. Indian authorities were tracking his whereabouts in Belgium after the country’s foreign ministry last month confirmed his location.

Choksi has been on the run from Indian agencies for years and had bought Antiguan citizenship in 2017. His legal team will likely fight extradition, potentially pointing to his worsening health — a strategy he’s employed successfully in the past. However, in light of the gravity of the charges, India is urging a quick process of deportation.

A Timeline of Choksi’s Escape & Capture:

• January 2018: PNB detects fraud; Choksi and nephew Nirav Modi flee India.

• 2019: Choksi claims to be "missing" in Antigua, later surfaces in Dominica.

• 2021: Arrested in Dominica for illegal entry but released after legal battles.

• 2024: Tracked down in Belgium, arrested on India’s request.

The PNB Scam: One of India’s Biggest Banking Frauds

Described as the biggest bank fraud in Indian history, the PNB scam, with a value of a whopping nearly ₹14,000 crore, was a well-done heist using fake LoUs and FLCs. Here’s how it worked:

• Pledging Fake Guarantees: Gitanjali Gems, owned by Choksi, PNB's Mumbai branch, gave LoUs to two of Nirav Modi's companies and the money was secured through this process without proper collateral.
• Funds Shuttled Overseas: These LoUs were used to obtain loans from foreign banks that were never repaid.
• Systemic failings: PNB staff were reportedly able to circumvent bank procedures, allowing the fraud to continue unchecked for years.

Key Figures in the Scam:

• Mehul Choksi: Owner of Gitanjali Gems who is alleged to be the mastermind behind the fraudulent operations.
• NIRAV MODI: High-profile diamond merchant, Choksi’s nephew, currently in jail in U.K.
• PNB Officials : Other employees were also collared as they helped out during the fraud.

The scam not only sent shock waves through India’s banking sector but was also widely seen as revealing shortcomings in oversight and regulatory failure.

Also read: Diamond Lease Dubai: A Reliable Choice for Car Rentals

Extradition Battle: Will Choksi Be Brought Back to India?

India has formally requested Choksi’s extradition, but the process won’t be straightforward. Here’s why:

1. Legal Challenges Ahead

• Antiguan Citizenship: Choksi renounced his Indian citizenship in 2017, complicating extradition.

• Health Claims: His lawyers may argue medical grounds to avoid deportation (similar to past attempts).

• Belgium’s Extradition Laws: The country has strict legal protocols, and Choksi may appeal.

2. Past Precedents

• Nirav Modi’s Case: Despite being arrested in the UK in 2019, his extradition is still pending due to legal appeals.

• Vijay Mallya’s Case: The liquor tycoon has avoided extradition for years, citing political persecution.

3. India’s Diplomatic Push

The CBI and Ministry of External Affairs (MEA) are working closely with Belgian authorities to fast-track the process. Given the bilateral treaty between India and Belgium, there’s hope for a quicker resolution than in Dominica (where Choksi was released due to citizenship issues).

What’s Next for Mehul Choksi?

If extradited, Choksi will face trial in India for:

• Cheating & Criminal Conspiracy (IPC)

• Money Laundering (PMLA)

• Fraud (under Banking Laws)

However, if he secures bail or stalls extradition, this could turn into another prolonged legal battle.

Conclusion: A Test for India’s Justice System

Mehul Choksi arrest will be a solid success for Indian agencies but much needs to be done to bring him back and deliver justice. The PNB scam was a wake-up call for India’s banking system that resulted in stricter anti-fraud safeguards and tighter loan monitoring.

As the extradition process unfolds, everyone will be paying attention to whether India can bring home one of its most wanted economic offenders. For now, the message is clear: The law will catch up to fraudsters, no matter how they try to hide.

Stay updated with the latest developments on this case and more at SociallyKeeda.com.

What do you think? Should countries expedite the extradition of financial criminals? Share your views in the comments!