Mehul Choksi, the fugitive Indian businessman involved in the over ₹13,000 crore ($1.5 million) Punjab National Bank (PNB) fraud case has been arrested in Belgium after India’s extradition request. The diamond merchant’s arrest comes just weeks after reports surfaced that he had been residing in Belgium with his wife. He is believed to have secured residency and a Belgian residency card in 2023, allegedly with her help.
A media report revealed that Mehul Choksi faked his legal documents with help from his wife, who is a Belgian citizen and gave false information about his nationality. But how did a businessman who took over his father’s small jewellery shop and turned it into a big business empire end up as a wanted criminal? Here’s what happened.
About Mehul Choksi
Mehul Choksi was born in May 1959 in Mumbai, India. His father, Chinubhai Choksi, ran a small jewellery business called Gitanjali Jewelers. Mehul took over the business and turned it into Gitanjali Group, which went on to become one of India’s biggest jewellery brands.
Under his leadership, the brand grew rapidly, with nearly 4,000 stores across India and a growing international presence. As his success grew, Mehul became well-known in celebrity circles and even started sponsoring Bollywood events.
But things weren’t as perfect as they looked. Behind the flashy lifestyle and fame, Choksi was secretly building one of the biggest financial scams in India’s history.
About the scam
In 2018, a huge scam came to light at a Mumbai branch of Punjab National Bank (PNB), one of India’s biggest government banks. The fraud was worth ₹13,500 crore and involved famous jeweller Nirav Modi and his uncle Mehul Choksi, who led Gitanjali Gems. The news sent shockwaves through India’s banking sector.
Nirav Modi and Mehul Choksi, with the help of a few corrupt bank officials, misused Punjab National Bank’s system to get fake Letters of Undertaking (LoUs). These documents allowed them to take large sums of money under the pretext of trade-related payments.
PNB reported the fraud to the Reserve Bank of India (RBI) on January 29, 2018, and then filed a criminal complaint with the CBI. A second report and complaint were submitted on February 7. By February 13, an FIR was registered against the Nirav Modi Group, Gitanjali Group, and Chandri Paper & Allied Products Pvt Ltd. The Enforcement Directorate also began investigating the case for money laundering.
Using these fake guarantees, Modi took loans worth ₹11,400 crore (about $1.77 billion) by saying it was for buying pearls. But the money was not used for trade, it was moved elsewhere and hidden. In 2018, just before a case was filed, Nirav Modi left India to avoid getting caught.
What probe agencies say
The probe agencies, CBI and ED, held Mehul Choksi and his nephew Nirav Modi responsible for the fraud and filed multiple cases against them. Choksi’s Indian passport was revoked, and Interpol issued a Red Corner Notice for his arrest.
Choksi’s escape drama
In 2021, Choksi mysteriously disappeared from Antigua and was later found in Dominica. He claimed that Indian agents had kidnapped him, but his story raised many questions.
India responded quickly, sending legal teams to Dominica to seek Choksi’s extradition. However, the businessman managed to escape and returned to Antigua, citing medical reasons.
Choksi’s arrest
Choksi was arrested on April 12 in Belgium. He had been living in Antwerp with his wife and was about to move to Switzerland for medical treatment when Belgian authorities detained him after India requested his extradition.
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