Indian diamond tycoon Mehul Choksi has been arrested in Belgium years after fleeing India, as authorities continue efforts to extradite him over one of the country’s biggest banking frauds.
Who is Mehul Choksi?
Mehul Choksi is a former high-profile diamond merchant and the owner of Gitanjali Gems, a once-prominent Indian jewellery chain that operated around 4,000 stores across the country. He, along with his nephew Nirav Modi, became the face of one of India’s biggest financial scandals involving a $1.8 billion fraud at Punjab National Bank (PNB), one of the country’s largest state-owned lenders.
Why Has He Been Arrested?
Choksi was arrested in Belgium on Saturday, following a request from Indian authorities for his extradition, his lawyer, Vijay Aggarwal, confirmed the arrest to media on Monday.
According to the Times of India, the arrest was based on two non-bailable warrants issued by Indian courts in 2018 and 2021. However, it remains unclear why the Belgian authorities acted at this particular time.
What Is the Case Against Him?
Indian authorities, including the Enforcement Directorate (ED), accuse Choksi and Modi of conspiring with staff at PNB’s Brady House branch in Mumbai. The duo allegedly obtained fraudulent letters of undertaking (LoUs) to secure overseas credit for jewellery imports. These funds, according to investigators, were then diverted and laundered.
Choksi and Modi both deny the allegations.
What Happens Now?
Choksi’s legal team has said they will challenge both his detention and any extradition attempt by India.
“These are the obvious grounds [on which we will argue the case], that he is not a flight risk and secondly, that he is extremely sick. He is undergoing cancer treatment,” said Aggarwal.
He also stated: “We will contest the extradition on grounds that there isn’t enough evidence against him and the extradition request is politically motivated and the trial in India may not be fair.”
Where Has Choksi Been Since 2018?
After leaving India in 2018, Choksi reportedly traveled to the United States before settling in Antigua, where he obtained citizenship. In 2021, he was arrested in Dominica under controversial circumstances, but was eventually returned to Antigua.
His nephew, Nirav Modi, meanwhile, is being held in a London prison and is also fighting extradition to India.
Hariprasad SV, a Bengaluru-based entrepreneur who flagged irregularities at PNB back in 2016, welcomed the arrest.
“Apart from bringing him back, the most important thing is to get back all those billions of dollars he looted from India,” he told ANI news agency.
What’s Next?
As Choksi prepares to contest his extradition in Belgium, Indian authorities are pushing forward in their efforts to bring him back to stand trial.
The outcome of this case could be significant not just for the Indian banking system but also for the government’s ability to pursue economic fugitives abroad.
