Mehul Choksi Arrested In Belgium In Connection With PNB Scam; Set To Seek Bail Citing Ill Health

Fugitive diamond trader Mehul Choksi, wanted in connection with the Rs 13,850 crore Punjab National Bank (PNB) loan fraud, has been arrested by police in Belgium, the Central Bureau of Investigation (CBI) confirmed.

Choksi, 65, is currently lodged in a Belgian jail and is expected to apply for bail citing ill health and other personal grounds.

According to report by Economic Times, Belgian police acted on two open-ended arrest warrants issued by a Mumbai court, dated 23 May 2018 and 15 June 2021, respectively. These warrants were issued in connection with Choksi’s alleged role in the massive banking fraud uncovered in early 2018.

Choksi, along with his nephew Nirav Modi, currently awaiting extradition from the United Kingdom is accused of orchestrating one of India’s largest banking scams.

The duo allegedly defrauded PNB by securing fraudulent Letters of Undertaking (LoUs) and Foreign Letters of Credit (FLCs) from the bank’s Brady House branch in Mumbai, facilitated through bribery and collusion with bank officials.

Both fled India in January 2018, shortly before the scam was made public.

Choksi, a citizen of Antigua and Barbuda, had claimed to have left the island nation for medical treatment. In 2021, he briefly went missing from Antigua and was later discovered in Dominica, where he faced legal proceedings before returning to Antigua.

However, recent reports confirmed that Choksi had taken up residence in Antwerp, Belgium, with his wife Preeti Choksi, a Belgian national. He is believed to have obtained a residency card allowing him to reside legally in the country.

Choksi had earlier informed a Mumbai court that he is battling blood cancer and undergoing radiation therapy, rendering him unfit to travel to India for trial.

In February, he filed a plea in a Belgian special court, stating he has been suffering from chronic lymphocytic leukaemia and lymphoma since 2023.

Meanwhile, the Enforcement Directorate (ED) has intensified efforts to recover nearly Rs 80 crore of alleged proceeds of crime held by Choksi abroad. The agency has approached several countries to monetise these foreign assets and transfer the funds back to India.

The ED has identified five overseas properties linked to Choksi in Thailand, Dubai, Japan, and the US.

In December 2024, the agency also began restoring assets worth over Rs 2,500 crore, handing over Rs 125 crore worth of properties to the liquidator of Gitanjali Gems as part of the ongoing recovery process.

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