Mehul Choski Arrested in Belgium: What Are The Charges Against Fugitive Businessman?

New Delhi: Fugitive diamond businessman Mehul Choksi has been arrested in Belgium following a formal extradition request by Indian authorities, in connection with the Rs 13,500 crore Punjab National Bank (PNB) fraud case.

Choksi's arrest comes after the withdrawal of the Interpol Red Notice against him — a development that had previously allowed him to travel internationally, except to India. Indian enforcement agencies, including the Central Bureau of Investigation (CBI) and the Enforcement Directorate (ED), swiftly moved to reinitiate extradition proceedings once the notice was lifted, as reported by PTI.

Also read | Fugitive Businessman Mehul Choksi Arrested in Belgium After India's Extradition Request

As per reports, the 65-year-old was allegedly planning to relocate to Switzerland for cancer treatment at a renowned medical facility, but was detained before the move.

What Are The Charges Against Mehul Choksi?

Choksi, the owner of Gitanjali Gems, is the key accused in the massive bank fraud, which came to light in 2018. The CBI filed its first complaint that year, alleging that Choksi and his companies obtained fraudulent Letters of Undertaking (LoUs) from PNB, resulting in huge financial losses.

Parallel investigations by the ED accused him of laundering the proceeds from the fraud and transferring funds to offshore accounts. Charges against him include offenses under the Prevention of Money Laundering Act (PMLA), as well as cheating, criminal conspiracy, and corruption-related provisions under the Indian Penal Code.

His nephew, Nirav Modi, also wanted in the same case, is currently lodged in a UK prison and is contesting extradition to India.

In December last year, the CBI launched a fresh case against Choksi, alleging that he diverted loans worth over ₹6,700 crore in a new instance of financial misconduct. This was in addition to the original charges that put him at the center of one of India’s biggest banking scams.

More recently, in February, a Mumbai special court overseeing PMLA cases allowed the auction of 13 properties tied to Gitanjali Gems Limited. The court, presided by Judge SM Menjoge, granted the liquidator’s plea, noting that the value of the assets would deteriorate if they remained idle and uncared for.

With his arrest in Belgium, India’s efforts to extradite Choksi gain fresh momentum, as investigators continue to build their case against one of the most high-profile economic offenders in recent memory.