PNB Scam Update: Diamond Merchant Mehul Choksi Held in Belgium, India Seeks His Return

Mehul Choksi, the fugitive businessman accused in the massive Rs. 14,000 crore Punjab National Bank (PNB) scam, has been arrested in Belgium. The arrest happened on Saturday after India requested Belgium to send him back (extradite him) to face charges.

Choksi is wanted in India for his alleged role in one of the country's biggest bank fraud cases. A Mumbai court had earlier issued two non-bailable arrest warrants against him, one in May 2018 and another in June 2021.

Background of the PNB Fraud Case

Mehul Choksi, along with his nephew Nirav Modi, is accused of cheating Punjab National Bank using fake letters to get huge loans from overseas banks. The scam caused the bank a loss of over Rs. 13,000 crore and shocked the entire country when it came to light in early 2018.

Just before the scam was exposed, Choksi left India and took citizenship of Antigua and Barbuda, a small island country. Since then, he has been living abroad to avoid arrest.

As per the latest reports, Indian officials say they found Choksi in Belgium and asked the authorities there to arrest him. Sources believe he was planning to go to Switzerland to get cancer treatment at a hospital there.

His lawyers have told the court that he is very sick and cannot travel. They have also submitted medical reports from Belgian doctors stating that he is undergoing cancer treatment and is not fit to travel until August 2025.

India is now trying to bring Choksi back through the extradition process. This means Indian authorities will have to present the case in a Belgian court and prove why he should be sent back to India. Meanwhile, his nephew Nirav Modi is also fighting extradition in the UK.