Indian Fugitive Accused in Nearly $2 Billion Bank Fraud Arrested in Belgium

In a significant development, Mehul Choksi, a prominent Indian diamond jeweler, was arrested on April 12, 2025, in Antwerp, Belgium. Choksi is accused of orchestrating a massive $1.8 billion fraud involving Punjab National Bank (PNB), one of India’s largest state-run banks. His arrest follows years of evasion after fleeing India in 2018.​ Wikipedia

Background of the Alleged Fraud

Choksi, along with his nephew Nirav Modi, allegedly exploited PNB’s internal systems to secure fraudulent Letters of Undertaking (LoUs). These LoUs were used to obtain overseas buyer’s credit, facilitating the import of diamonds and other precious stones. The funds obtained were purportedly diverted for personal luxuries and international investments. The scam came to light in early 2018, leading to a nationwide investigation.​

The Fugitives: Choksi and Modi

After the fraud was uncovered, both Choksi and Modi fled India. Choksi sought citizenship in Antigua and Barbuda under the country’s Citizenship by Investment program, while Modi relocated to the United Kingdom. In 2019, Modi was arrested in London and has since been in custody, awaiting extradition to India. Choksi, however, managed to evade capture until his recent arrest in Belgium.​

Legal Proceedings and Extradition Efforts

Following Choksi’s arrest, Indian authorities have initiated extradition proceedings. Choksi’s legal representative, Vijay Aggarwal, has indicated plans to appeal the arrest, citing concerns over his client’s health and the conditions in Indian prisons. Choksi is reportedly undergoing cancer treatment and has been described as a low flight risk.​

Broader Implications

The arrest of Choksi is a significant development in the ongoing efforts to bring financial fugitives to justice. The case has drawn international attention to the challenges of cross-border financial crimes and the complexities involved in extradition processes. It also underscores the importance of robust banking systems and regulatory frameworks to prevent such large-scale frauds.​

Conclusion

Mehul Choksi’s arrest in Belgium marks a pivotal moment in one of India’s most high-profile financial fraud cases. As legal proceedings unfold, the case is likely to have far-reaching implications for international financial regulations and the enforcement of justice in cross-border financial crimes.