Mehul Choksi Denied Bail by Belgian Court in Rs 13,500 Crore PNB Scam Case

A court in Belgium has refused to give bail to Mehul Choksi, who is wanted in India for the ₹13,500 crore Punjab National Bank (PNB) scam. He was arrested last week after Indian authorities asked Belgium to detain him.

A three-judge panel looked at the case and said Choksi could run away again if released. So, they denied his request for bail.

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India Steps Up Extradition Efforts

With bail denied, the Indian government is expected to expedite formal extradition proceedings. Officials have already submitted detailed documentation to Belgian authorities to support their case for bringing Choksi back to India. Sources say the Ministry of External Affairs and investigative agencies, including the CBI and ED, are working closely to ensure a strong legal argument is presented in the Belgian court. Choksi had fled India in early 2018, just before the PNB fraud came to light. He later acquired citizenship in Antigua and Barbuda and has since avoided extradition by moving across jurisdictions and exploiting legal loopholes.

 

Now that Choksi is in custody, India is speeding up the process to bring him back. The government has sent all the necessary papers to Belgium to begin formal extradition. This means India is asking Belgium to hand over Choksi so he can face trial in an Indian court.

What Is the PNB Scam?
The Punjab National Bank scam is one of the biggest banking frauds in India’s history. Choksi and his nephew Nirav Modi are accused of using fake bank documents (called Letters of Undertaking or LoUs) to get huge loans from banks. These loans were never repaid, causing losses worth Rs 13,500 crore. The scam shocked the country and raised serious questions about how banks were being managed. While Nirav Modi is still in jail in the UK, Choksi had managed to stay free—until now.

What’s Next for Choksi?
The next step is a court hearing in Belgium to decide whether Choksi should be sent back to India. If the court agrees, he could finally return to India after almost seven years on the run. This is seen as a big success for Indian authorities, who have been trying to bring back several economic fugitives. Choksi’s arrest and the court’s decision are major steps forward in that mission.