Indian diamond merchant Mehul Choksi, wanted in connection with a $1.8 billion fraud at Punjab National Bank (PNB), has been arrested in Belgium following India’s extradition request.
Choksi fled India in 2018 and obtained citizenship in Antigua and Barbuda before relocating to Belgium, where he reportedly secured residency using falsified documents.
His lawyer, Vijay Aggarwal, stated that Choksi plans to contest the extradition, citing health issues and insufficient evidence against him, while alleging political motives behind the request.
Choksi and his nephew Nirav Modi are accused of orchestrating one of India’s largest banking frauds by using fraudulent letters of undertaking.
Modi is currently imprisoned in London, awaiting extradition to India. Belgian authorities have confirmed Choksi’s presence and are monitoring the case closely, though they have not disclosed further details.
The arrest marks a development in India’s efforts to prosecute high-profile financial crimes. Legal experts suggest the extradition process could face delays due to Belgium’s stringent human rights protections, particularly given Choksi’s claims of medical vulnerability and potential political bias.
If extradited, he would join a growing list of businessmen facing trial in India’s crackdown on bank frauds, which has intensified since the PNB scandal exposed systemic loopholes in the country’s banking sector.
Meanwhile, the case has reignited debates about accountability in India’s financial institutions. Critics argue that the PNB fraud underscores the need for stricter oversight to prevent collusion between bankers and borrowers.
The Enforcement Directorate (ED), which investigates economic crimes, has seized assets worth over ₹2,000 crore ($270 million) linked to Choksi and Modi, but recovery of the full amount remains a challenge.
Source: BBC
