In a significant move towards justice in one of India's biggest banking frauds, Mehul Choksi, a central figure in the ₹13,000 crore Punjab National Bank (PNB) scam, was arrested in Belgium on April 12. This action comes after persistent efforts by Indian agencies, who have long been tracking the fugitive diamond trader since his escape in 2018.

Arrest and Location Shift

Choksi, 65, was residing in Antigua since 2018, having obtained citizenship of the Caribbean nation. He reportedly travelled to Belgium last year for medical treatment and was apprehended in Antwerp based on a pending extradition request from Indian authorities.

India Prepares for Extradition

India is not wasting any time in trying to bring Choksi back. A multi-agency team, including representatives from the Central Bureau of Investigation (CBI), the Enforcement Directorate (ED), the Ministry of External Affairs (MEA), and international legal experts, is being assembled. The purpose of the delegation is to coordinate with Belgian authorities, attend court hearings, and streamline the extradition process.

A source close to the matter confirmed, “A CBI team will be there in due course as the hearing begins.”

ED and CBI Actively Involved

The Enforcement Directorate has also intensified its role, maintaining close contact with Belgian officials and sharing key evidence to strengthen India’s case for extradition. Notably, in July 2018, the ED had filed a plea to declare Choksi a Fugitive Economic Offender (FEO) under the Fugitive Economic Offenders Act, but the legal proceedings have faced continuous hurdles.

Legal Roadblocks So Far

Choksi’s legal team has consistently used tactical delays, including claims of medical issues, a suspended Indian passport, and procedural objections. However, Indian authorities have countered these claims, asserting that the court had already ruled against Choksi’s arguments regarding his passport.

In September 2023, the Bombay High Court dismissed Choksi’s petition, stating that the ED had followed due process. This judgment also lifted a stay on the FEO proceedings, but since then, the case hasn’t moved significantly forward, with Choksi’s lawyers filing repeated petitions.

Who Is Mehul Choksi?

Mehul Choksi, along with his nephew Nirav Modi, is accused of masterminding the PNB scam. The fraud involved fraudulent Letters of Undertaking (LoUs) issued by PNB’s Brady House branch in Mumbai, enabling massive illegal credit transactions through foreign banks.

While Nirav Modi is currently in custody in the UK and has already been declared an FEO, Choksi managed to flee to Antigua in early 2018, just days before the scam came to light. His escape raised serious questions about India’s border and passport vigilance at the time.

The Extradition Hurdle

Unlike Modi, Choksi’s case has been more complex due to his Antiguan citizenship. Although India had initiated legal proceedings in Antigua, progress was slow, and his sudden appearance in Belgium has opened a new opportunity for India to act swiftly.

With Belgium and India having an extradition agreement, there is renewed hope that Choksi may finally be brought back to face the law. Indian officials are reportedly optimistic about the process moving forward now that he is no longer under the protection of Antiguan citizenship laws.

Political and Public Reactions

The arrest has sparked widespread reactions across the political spectrum. Opposition leaders are calling for accountability from financial regulators and banks, while government officials are hailing this as a major breakthrough in the long fight against economic fugitives.

There is also intense public interest, especially given the high-profile nature of the scam and the magnitude of financial damage to public institutions.

What Happens Next?

In the coming days, the Indian team will travel to Belgium and present supporting documents, coordinate with prosecutors, and attend legal proceedings. The focus will be on countering Choksi’s legal team, who are expected to challenge the extradition on humanitarian and procedural grounds.

However, with stronger legal coordination and more international cooperation, Indian authorities are more confident than ever.

Conclusion

The arrest of Mehul Choksi in Belgium marks a major turning point in the long-running investigation into the ₹13,000 crore PNB scam. With the Indian government now assembling a high-level multi-agency team to ensure his swift extradition, there is renewed hope for justice and recovery in one of India's largest financial fraud cases.

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