In a major breakthrough, Indian fugitive Mehul Choksi has been arrested in Belgium following an extradition request by Indian authorities. Choksi is a key accused in the $1.8 billion Punjab National Bank (PNB) fraud, one of the biggest financial scams in India’s history.
Massive Scam Uncovered
The scandal came to light in 2018, when India’s Punjab National Bank, the country’s second-largest state-run lender, reported a massive fraud.
Choksi, a 65-year-old diamond trader, is accused of forging documents to obtain fraudulent letters of credit used to import jewelry.
Authorities claim that these fake documents enabled his company to receive unauthorized loans, bypassing regulatory checks for years.
Involvement of Nirav Modi and Family
Choksi wasn’t alone.
His nephew Nirav Modi, a celebrity jeweler, is also a key figure in the scam. Nirav Modi is currently awaiting extradition from the United Kingdom, after being arrested in London in 2019.
Other suspects include family members, employees of their luxury jewelry firm, and several bank officials allegedly complicit in the scheme.
The scandal, which spanned years, is believed to have caused a $1.8 billion loss to PNB, severely damaging public trust in the banking system.
India’s Biggest Bank Fraud
This case is widely regarded as the largest bank scam in Indian history.
The operation allegedly involved fraudulent Letters of Undertaking (LoUs) issued by bank staff without official authorization, sidestepping normal compliance protocols.
The funds were used to finance diamond imports, but much of the money was siphoned off.
Choksi fled India just before the scam was uncovered, prompting Indian authorities to initiate international efforts to bring him back.
Choksi’s Legal Strategy
Authorities in New Delhi confirmed that Choksi will likely fight extradition in Belgium.
He is expected to apply for bail, citing medical grounds—a tactic he has used previously while evading capture in other jurisdictions.
Choksi had earlier acquired citizenship in Antigua and Barbuda in 2017 under an investment scheme. He used this Caribbean base to avoid Indian legal action for several years.
Nirav Modi’s Glittering Fall
Nirav Modi, once considered one of India’s most successful businessmen, had built a global jewelry empire with stores in New York, London, Hong Kong, and other major cities.
His brand catered to A-list celebrities, including Naomi Watts, Kate Winslet, and Priyanka Chopra-Jonas.
In 2017, Forbes estimated Nirav Modi’s net worth at $1.73 billion.
But just a year later, his reputation collapsed as the scam was exposed, and Interpol issued red notices against both Modi and Choksi.
Despite sharing a last name, Nirav Modi is not related to Indian Prime Minister Narendra Modi.
Global Financial Crime and Extradition
The case has become a symbol of high-level financial crime and international evasion.
India has been pressing for faster extradition processes and stricter checks on economic fugitives who exploit global loopholes.
The arrest of Mehul Choksi in Belgium is a significant step forward in India’s efforts to bring the accused in the $1.8 billion PNB scam to justice.
As the legal process unfolds, all eyes remain on Belgian courts and on Nirav Modi’s pending extradition from the UK.
This case serves as a wake-up call to the global financial system to tighten oversight and prevent similar frauds.
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