Mehul Choksi Arrested in Belgium Over ₹13,000 Crore PNB Scam
Mehul Choksi’s name once glittered in India’s jewelry industry. As the founder of Gitanjali Group, his stores dotted malls across the country, selling diamonds to millions. But by 2018, his empire collapsed under the weight of a ₹13,000 crore fraud—a scandal that exposed India’s banking vulnerabilities and turned Choksi into a fugitive.
The LoU Scam: A Banking System Exploited
In February 2018, Punjab National Bank (PNB) stunned the nation by revealing fraudulent Letters of Undertaking (LoUs)—fake guarantees—used by Choksi and his nephew Nirav Modi to siphon funds. These documents, bypassing PNB’s internal systems, allowed them to secure overseas loans unchecked. By the time auditors noticed, the duo had vanished, leaving behind a trail of financial ruin.
Escape to Antigua: A Pre-Planned Exit
Choksi didn’t flee in panic. In 2017, he secured citizenship in Antigua and Barbuda through its “Golden Passport” scheme, which grants residency for investments. With no extradition treaty with India at the time, the Caribbean island became his safe haven. He left India days before the scam broke, leaving investigators scrambling.
Dominica Drama: Kidnapping Claims and Legal Loopholes
In May 2021, Choksi’s quiet life in Antigua took a bizarre turn. He disappeared, only to surface in Dominica with bruises and a wild story: Indian agents had allegedly kidnapped him to force repatriation. Dominica’s court dismissed the illegal entry charges but refused India’s extradition request, sending him back to Antigua. The incident sparked diplomatic friction and conspiracy theories.
Mounting Charges and a Global Chase
While hiding in Antigua, Choksi faced fresh accusations. In 2022, the CBI accused him of defrauding ICICI Bank and PNB (again) of ₹6,746 crore. Meanwhile, Nirav Modi, arrested in London in 2019, remains jailed as UK courts reject his bail pleas.
Also Read: Shine City Scam: STF Arrests India Business Head Brijmohan Singh in ₹75 Crore Investment Fraud
Belgium Bound: Cancer Treatment or New Hideout?
After the Dominica episode, Choksi slipped into Antwerp, Belgium—a global diamond hub. His lawyers claimed he sought cancer treatment there, but Indian agencies suspected forged residency documents. For months, authorities tracked his movements until Belgian police arrested him in a coordinated operation.
Extradition Battle: Health vs. Justice
India now faces a legal maze to bring Choksi home. His lawyers are expected to cite deteriorating health to stall extradition. “His medical condition complicates the process,” admits a CBI official. Meanwhile, Belgium’s courts will weigh India’s evidence against human rights concerns.
Seizing the Spoils: India’s Asset Crackdown
Back home, agencies have frozen Choksi’s properties, including luxury apartments and bank accounts. A Mumbai court is poised to label him a Fugitive Economic Offender (FEO), enabling faster confiscation of his global assets.
Why Choksi’s Case Still Resonates
The PNB scam wasn’t just about money—it shattered trust in India’s banking safeguards. Choksi’s arrest rekindles hope for accountability, but his prolonged evasion highlights how wealthy elites exploit legal gaps. As India pushes for extradition, the world watches: Will this mark the end of a decade-long fraud saga—or just another chapter?
