PNB fraud case: Mehul Choksi arrested in Belgium on requests from Indian authorities

Mehul Choksi, the fugitive diamond trader implicated in the Punjab National Bank (PNB) fraud case, has been arrested in Belgium. His arrest was facilitated by requests from Indian authorities, including the Central Bureau of Investigation (CBI) and the Enforcement Directorate (ED), following the issuance of non-bailable warrants by Mumbai courts. 

Choksi is notably accused of defrauding PNB of over Rs 13,000 crore through deceitful letters of undertaking and foreign letters of credit, involving his firm, Gitanjali Gems.

The arrest in Belgium was initiated after Indian agencies reactivated extradition requests, despite the removal of an Interpol Red Notice against Choksi. Sources confirmed that his capture was directly linked to these renewed efforts. 

Choksi, who had been residing in Antigua, travelled to Europe citing medical reasons. His lawyers previously argued his incapacity to travel due to blood cancer. However, Indian officials contended that if he could travel to Belgium for treatment, a return to India was feasible.

Legal proceedings in Belgium are expected to complicate and potentially prolong Choksi's extradition to India. He is likely to utilise all available legal avenues to delay extradition. Nonetheless, the ED has been actively pursuing to have Choksi declared a Fugitive Economic Offender.

Choksi's legal troubles are compounded by additional charges of conspiracy and fraud filed by both the CBI and ED. These charges include collusion with bank officials and other parties to orchestrate what is regarded as one of India's largest banking scandals. Investigations have relied on testimonies from key individuals such as Gitanjali Group’s banking head Vipul Chitalia and PNB Chief Manager Gokulnath Shetty, which have provided a comprehensive view of the fraudulent operations.

Meanwhile, Choksi's nephew, Nirav Modi, implicated in the same scam, remains in a UK prison as he contests extradition initiated by Indian authorities.