NEW DELHI (Diya TV) — Fugitive Indian businessman Mehul Choksi, accused of orchestrating one of India’s biggest bank frauds, was arrested in Belgium on April 12 following an extradition request from Indian authorities, his lawyer confirmed Monday.
Choksi, the former chairman of Gitanjali Gems, fled India in early 2018 as investigators closed in on his role in defrauding Punjab National Bank (PNB) of nearly $1.8 billion (Rs 13,000 crore). His alleged financial crimes, involving fraudulent Letters of Undertaking (LoUs) issued to companies controlled by him and his nephew Nirav Modi, sparked outrage and reforms across India’s banking sector.
The Central Bureau of Investigation (CBI) and the Enforcement Directorate (ED) led the pursuit, seeking Choksi’s extradition for years. Official sources told ANI the arrest came after Indian authorities flagged his presence in Antwerp, Belgium, where he had been living with his wife, Preeti Choksi, reportedly using a local residency card.
Choksi’s lawyer told the BBC his client would challenge both the arrest and India’s extradition request, claiming the move was politically motivated. “He is not a flight risk and is undergoing cancer treatment,” the lawyer said, signaling an upcoming legal battle in Belgian courts.
Choksi, once a high-flying jeweler, built Gitanjali Gems into a sprawling retail empire with around 4,000 stores across India. His alleged scam, exposed in 2018, involved siphoning billions from PNB through fake credit guarantees and laundering the funds overseas. His nephew, Nirav Modi — whose designs were once worn by Hollywood celebrities, including actress Priyanka Chopra — has been held in London’s Wandsworth Prison since 2019 while fighting his own extradition.
Entrepreneur Hariprasad SV, the whistleblower who flagged the fraud in 2016, welcomed Choksi’s arrest but urged authorities to focus on recovering the stolen funds. “The priority now is not just bringing him back but recovering the billions he stole,” Hariprasad told ANI.
The arrest marks a significant step in a years-long saga that has wound through courts and headlines worldwide. Since fleeing India, Choksi has bounced between several countries, including Antigua and Barbuda — where he obtained citizenship under an investment scheme — and Dominica, where he was briefly detained in 2021 after what he claimed was a kidnapping attempt by Indian operatives.
India’s efforts to bring Choksi back have involved multiple agencies and legal maneuvers, including securing a Red Corner Notice from Interpol, seizing properties and assets, and successfully lobbying for his designation as a Fugitive Economic Offender under India’s stringent anti-fraud laws.
The timeline of the case is packed with legal twists. In February, an Indian court authorized the auction of Choksi’s assets to recover part of the defrauded sum. Earlier rulings allowed the Enforcement Directorate to begin restitution of over Rs 2,500 crore worth of assets linked to Choksi and his firms.
Meanwhile, Nirav Modi’s extradition case continues in the U.K. courts, where he has appealed a Home Office order approving his transfer to India. The two cases — often dubbed India’s biggest corporate fraud scandal — have come to symbolize regulatory lapses and political controversy over the country’s handling of financial crimes.
Choksi’s return, if successful, would mark a rare victory for Indian authorities pursuing white-collar fugitives abroad. But legal experts suggest the process in Belgium could take months or even years, especially if Choksi’s health claims and political motivation arguments gain traction in European courts.
As of now, Belgian authorities have not released an official statement on the arrest, and the timeline for any extradition hearing remains unclear.
