Fugitive Businessman Mehul Choksi Arrested in Belgium in PNB Bank Fraud Case

In a significant breakthrough, Mehul Choksi, one of India’s most wanted economic fugitives, has been arrested in Belgium in connection with the infamous Punjab National Bank (PNB) loan fraud case worth over ₹13,000 crore.

Choksi, a diamond merchant and promoter of Gitanjali Gems, fled India in 2018 after being accused of masterminding one of the biggest banking scams in Indian history, alongside his nephew Nirav Modi.

Arrest Made on India’s Request

The arrest was reportedly made based on a red corner notice issued by Interpol and formal extradition request from India. According to sources, Indian agencies including CBI and ED are already in touch with Belgian authorities to begin the process of extradition.

Details of the ₹13,000 Crore Scam

The fraud involved fraudulent letters of undertaking (LoUs) issued by PNB’s Brady House branch in Mumbai to overseas banks to benefit Choksi and Nirav Modi’s companies. The scam caused a massive loss to the nationalized bank and rocked the Indian financial system.

Choksi’s Hideouts and Legal Battles

After leaving India, Mehul Choksi acquired citizenship in Antigua and Barbuda. In the past, efforts to repatriate him faced legal hurdles due to his citizenship and pending court cases in Caribbean nations. His arrest in Belgium is seen as a key step toward bringing him back to face justice in India.

Indian Government’s Response

The Ministry of External Affairs has confirmed the arrest and assured that legal and diplomatic processes are underway. Officials believe this is a major win for India’s efforts in tracking economic fugitives and recovering stolen public funds.

Study Update - times-news.in