Who Is Mehul Choksi? Fugitive Diamond Tycoon Accused In ₹13,805 Cr PNB Loan Fraud Case, Arrested In Belgium

In a breakthrough in India's most infamous banking fraud case, Mehul Choksi, the fugitive diamond merchant accused in the Punjab National Bank (PNB) loan fraud, has been reportedly arrested in Belgium.

The 65-year-old businessman was taken into custody on Saturday, April 12, sources in the Central Bureau of Investigation (CBI) confirmed to NDTV. As per the report, the arrest was carried out on the basis of two open-ended arrest warrants issued by a Mumbai court in 2018 and 2021. Choksi is currently lodged in a Belgian jail and is likely to apply for a bail, citing health issues.

Who Is Mehul Choksi?

Mehul Choksi is the former chairman of Gitanjali Group, which back in the day was one of India’s largest jewellery retail chains with over 4,000 stores across the country. Born on May 5, 1959, in Mumbai, he took over his family's diamond business in 1985 succeeding his father, Chinubhai Choksi. He eventually expanded operations and became a prominent name in the Indian gem and jewellery industry.

Also a citizen of Antigua and Barbuda since 2017, Choksi has familial and business ties in Belgium as well. As per reports, one of his daughters is married to an Antwerp-based diamond merchant, and his brother Chetan Choksi previously ran a diamond firm in the city. Choksi reportedly moved to Belgium for medical treatment and was living in Antwerp with his wife Preeti, who is also a Belgian citizen.

What is the Punjab National Bank (PNB) Scam?

Choksi, along with his nephew Nirav Modi, remains accused of orchestrating a Rs 13,850 crore scam against the Punjab National Bank, making it one of the largest frauds in India’s banking history. The duo allegedly manipulated the bank’s Brady House branch in Mumbai to issue fraudulent Letters of Undertaking (LoUs) and Foreign Letters of Credit (FLCs) in favour of overseas suppliers, circumventing the Reserve Bank of India's 90-day limit on such credits.

According to investigators, the scam was executed over several years with the help of other complicit PNB officials. These LoUs were never really recorded in the bank's core system, which enabled Choksi’s companies to secure unauthorised credit from Indian bank branches abroad.

Choksi's Flight from India and International Chase

Choksi fled from India in January 2018, just days before the scam came to light. He later resurfaced in Antigua and Barbuda, where he had acquired citizenship through an investment program. In 2021, the diamond trader mysteriously vanished from Antigua and was later found in Dominica, reportedly trying to escape to Cuba by boat. The incident had also triggered an international legal tussle involving three Caribbean nations.

Belgian authorities recently confirmed Choksi’s presence in the country, where he had obtained a residency permit.

Earlier in December 2024, Indian Finance Minister Nirmala Sitharaman had announced in the Parliament that assets worth Rs 22,280 crore linked to economic offenders like Choksi had been seized or liquidated to repay public sector banks. Choksi currently faces several charges including criminal conspiracy, cheating, money laundering, and corruption under the Indian law.

As extradition proceedings loom, Indian agencies are now making preparations to bring Choksi back to face justice.