Fugitive Jeweller Mehul Choksi Held in Belgium Over India’s PNB Fraud Extradition Plea

Indian authorities have secured the detention of fugitive diamond merchant Mehul Choksi in Belgium, following a formal extradition request linked to his alleged role in the Rs 13,000 crore Punjab National Bank (PNB) loan fraud case, sources confirmed on Monday.

The apprehension occurred on Saturday, marking a significant step in India’s pursuit of the absconding businessman. According to official sources, the Enforcement Directorate (ED) and Central Bureau of Investigation (CBI) sought Choksi’s extradition after an Interpol Red Notice for his arrest was withdrawn.

Choksi, along with his nephew Nirav Modi also a fugitive diamond trader and several associates, including family members, employees, and bank officials, were charged by the ED and CBI in 2018. The agencies accuse them of orchestrating a massive fraud at PNB’s Brady House branch in Mumbai.

The ED alleges that Choksi and his company, Gitanjali Gems, collaborated with certain bank officials to deceitfully obtain Letters of Undertaking (LOUs) and inflate Foreign Letters of Credit (FLCs) without adhering to proper protocols, resulting in substantial financial losses for PNB. To date, the ED has filed three charge sheets against Choksi, with the CBI submitting parallel charges.