Indian businessman Mehul Choksi has been arrested in Belgium after Indian authorities formally requested his extradition. Choksi, who left India in 2018, was taken into custody on Saturday, according to his lawyer Vijay Aggarwal, who confirmed the development to the BBC on Monday.
Choksi is facing serious allegations in India for his alleged role in a massive bank fraud case, involving one of the country’s largest public sector banks, Punjab National Bank (PNB). Authorities claim the diamond merchant played a key part in defrauding the bank of approximately $1.8 billion, or £1.3 billion.
The businessman has not issued any personal statement about the arrest or the accusations, but his legal team has indicated they are preparing to appeal both his arrest and the extradition proceedings that may follow. His lawyer, Aggarwal, said, “These are the obvious grounds [on which we will argue the case], that he is not a flight risk and secondly, that he is extremely sick. He is undergoing cancer treatment.”
Aggarwal further emphasized their legal strategy, stating, “We will contest the extradition on grounds that there isn’t enough evidence against him and the extradition request is politically motivated and the trial in India may not be fair.”
The BBC reported it had reached out to India’s Ministry of External Affairs and the Enforcement Directorate (ED), the country’s primary financial crimes agency, but neither had responded with a comment at the time of reporting.
A report in the Times of India shed more light on the legal basis for Choksi’s arrest, citing that two non-bailable arrest warrants had been issued against him by an Indian court — one in 2018 and another in 2021. However, the timing of the arrest in Belgium remains unclear, especially since these warrants had existed for years without leading to his capture until now.
Choksi and his nephew, Nirav Modi, are both accused by Indian authorities of orchestrating the massive fraud scheme involving PNB. The two reportedly worked together to siphon off money by manipulating the bank’s system through fraudulent transactions. Nirav Modi, like his uncle, left India in 2018 and has since been residing in the United Kingdom. He is currently held in a London prison, awaiting a decision on his extradition to India.
Both Choksi and Modi were once highly prominent figures in the global diamond industry. Nirav Modi’s designs were featured on global red carpets, worn by major Hollywood celebrities including Naomi Watts and Kate Winslet. His brand even had one of India’s top Bollywood stars, Priyanka Chopra, as its ambassador.
Meanwhile, Choksi was the founder of Gitanjali Gems, a once-thriving jewellery retail chain in India that operated close to 4,000 outlets across the country. His business empire was well-known in the Indian jewellery market until the fraud allegations surfaced.
The Enforcement Directorate alleges that Choksi and Modi colluded with certain employees at the Brady House branch of Punjab National Bank in Mumbai. According to the agency, they used fraudulent Letters of Undertaking (LoUs) to obtain large sums of money from the bank. These funds were meant to be payments for importing precious stones from overseas suppliers. However, investigators claim that the money was never used for its stated purpose and instead was diverted and laundered through various shell companies and foreign accounts.
Both Choksi and Modi have consistently denied the allegations. They maintain that the charges are baseless and politically influenced. Despite fleeing India, they have continued to challenge extradition efforts from abroad.
After leaving India in early 2018, Choksi is believed to have first traveled to the United States and subsequently relocated to Antigua, a country where he obtained citizenship through an investment program. His Antiguan citizenship complicated India’s attempts to have him extradited, as the process required careful diplomatic negotiations and legal procedures involving the Caribbean nation.
In 2021, Choksi found himself in legal trouble once again when he was reportedly detained in Dominica under suspicious circumstances. There were conflicting reports about whether he was abducted from Antigua or if he voluntarily traveled to Dominica. In any case, authorities in Dominica eventually deported him back to Antigua, rather than sending him to India.
Choksi’s arrest in Belgium marks a significant development in the long-running case, which has drawn national attention in India and raised serious questions about financial oversight at major Indian banks. The PNB scandal, as it came to be known, led to massive public outcry, political debate, and reforms in banking regulations.
Hariprasad SV, an entrepreneur from Bengaluru who first raised alarm bells in 2016 about suspicious activities related to the PNB scam, expressed satisfaction at the news of Choksi’s arrest. He told ANI news agency, “Apart from bringing him back, the most important thing is to get back all those billions of dollars he looted from India.”
With Choksi now in custody in Belgium, Indian authorities are expected to step up their legal efforts to secure his extradition. However, the process could be prolonged due to the multiple legal challenges expected from his defense team. Issues such as his health, the fairness of the Indian judicial process, and the political nature of the case are likely to be key points of contention.
Meanwhile, the Indian government continues its efforts to bring both Mehul Choksi and Nirav Modi to justice. The case remains one of the most high-profile financial scandals in India’s history, with repercussions that have extended far beyond the country’s borders.
Choksi’s legal fate now rests in the hands of Belgian judicial authorities, who will have to evaluate the Indian government’s request against international legal standards for extradition. While his legal team is prepared to challenge the process vigorously, the arrest is nonetheless seen as a breakthrough moment in a case that has dragged on for more than six years.
As the case proceeds, public and media scrutiny is expected to intensify, especially given the large sums of money involved and the personalities at the center of the controversy. For now, the Indian government and financial regulators are awaiting the next steps from Belgium’s legal system, hoping that the long pursuit of justice may finally be approaching a resolution.