Fugitive diamond trader Mehul Choksi, wanted in the Punjab National Bank (PNB) loan fraud case, has been arrested by Belgian authorities, sources familar with the development confirmed on Sunday.
The arrest came at the request of Indian agencies, including the Central Bureau of Investigation (CBI) and the Enforcement Directorate (ED), after non-bailable warrants were issued against him by courts in Mumbai.
Choksi, a fugitive since 2018, was detained on April 12 while undergoing treatment at a hospital in Belgium.
Sources revealed that Choksi had travelled to Europe, claiming poor health, just as Indian authorities began intensifying efforts for his extradition. He was under medical care at the time of his arrest, which follows the ramping up of efforts by Indian agencies to secure his return.
Sources said Choksi was preparing to shift to Switzerland for further medical treatment when he was apprehended.
The legal proceedings began after the ED and CBI filed extradition requests in September 2024. At the time, Choksi's legal team claimed that he was suffering from blood cancer and unfit to travel. However, Indian authorities contested this, pointing out that he had been able to fly from Antigua to Belgium for treatment and could similarly return to India, where medical care was available.
Choksi's arrest was triggered after the Interpol Red Notice against him was revoked. Despite this, the ED and CBI pursued a fresh extradition request, which eventually led to his capture by Belgian authorities.
Choksi faces charges of defrauding Punjab National Bank of over Rs 13,000 crore using fraudulent letters of undertaking (LOUs) and foreign letters of credit (FLCs). His firm, Gitanjali Gems, is also named in multiple charge sheets filed by the ED in connection with the case. Additionally, the CBI has filed similar charges, accusing Choksi, his nephew Nirav Modi, their companies, and bank officials of conspiracy, cheating, and corruption.
The ED has also pursued action under the Fugitive Economic Offenders Act, seeking to declare Choksi a fugitive economic offender in connection with the money laundering case. Meanwhile, Choksi's nephew Nirav Modi remains in a UK prison, contesting extradition proceedings initiated by India.
Authorities are now working to bring Choksi back to India, although legal challenges in Belgium may delay the process. He is expected to mount a legal defence, potentially extending the extradition timeline.
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