{"id":281310,"date":"2025-04-14T04:42:16","date_gmt":"2025-04-14T04:42:16","guid":{"rendered":"https:\/\/news.talkwithrattan.com\/index.php\/2025\/04\/14\/mehul-choksi-arrested-what-are-the-crimes-of-the-fugitive-diamantaire-who-hit-indian-banking-sector\/"},"modified":"2025-04-14T04:42:16","modified_gmt":"2025-04-14T04:42:16","slug":"mehul-choksi-arrested-what-are-the-crimes-of-the-fugitive-diamantaire-who-hit-indian-banking-sector","status":"publish","type":"post","link":"https:\/\/news.talkwithrattan.com\/index.php\/2025\/04\/14\/mehul-choksi-arrested-what-are-the-crimes-of-the-fugitive-diamantaire-who-hit-indian-banking-sector\/","title":{"rendered":"Mehul Choksi Arrested: What are the crimes of the fugitive diamantaire who hit Indian banking sector"},"content":{"rendered":"
\"Mehul<\/div>


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Mehul Choksi, a name that has been synonymous with one of India\u2019s biggest banking frauds, has found himself back in the headlines after his arrest in Belgium on Saturday.<\/p>\n

The fugitive diamantaire, who has been on the run since 2018, is accused of being involved in the over Rs 13,000 crore Punjab National Bank<\/a> (PNB) loan scam at the time. <\/p>\n

The arrest comes after an extradition<\/a> request from Indian investigative agencies, the Central Bureau of Investigation<\/a> (CBI) and the Enforcement Directorate<\/a> (ED), which have been working relentlessly to bring Choksi back to face trial for his alleged role in one of India\u2019s largest financial scandals.<\/p>\n

The alleged PNB scam
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The PNB fraud scandal, which first came to light in early 2018, involved Choksi, his nephew Nirav Modi<\/a>, and a number of accomplices, including certain PNB officials. <\/p>\n

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The two businessmen allegedly colluded with bank staff to obtain Letters of Undertaking (LoUs) and Foreign Letters of Credit (FLCs) by bypassing prescribed procedures. These letters, essentially guarantees issued by PNB, were used by Choksi\u2019s firm, Gitanjali Gems, to secure loans from foreign banks. <\/p>\n

However, the loans were allegedly fraudulent as they were issued without a sanctioned limit or cash margin, and no entries were made in PNB\u2019s central banking system to avoid scrutiny.<\/p>\n

The fraudulent activities led to a massive loss of Rs 6,344 crore for the bank, with money lent by banks like State Bank of India<\/a>, Axis Bank<\/a>, and others, on the basis of these fraudulent documents.<\/p>\n

As per Reserve Bank of India (RBI) guidelines, once fraud is reported, the entire loan amount must be written off. Consequently, PNB had to book the entire $2 billion exposure from the LoUs issued for Nirav Modi’s group firms as a Non-Performing Asset (NPA).<\/p>\n

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The escape
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Choksi\u2019s journey as a fugitive began in January 2018, shortly before the PNB scam<\/a> became public. Citing medical reasons, he fled India for the United States, eventually settling in Antigua. <\/p>\n

He had obtained citizenship in Antigua in 2017, just a few months before his departure. His escape was well-planned, as he strategically moved through several countries to evade Indian authorities.<\/p>\n

In 2019, his nephew Nirav Modi was arrested in the UK and has since been fighting extradition to India. <\/p>\n

Choksi, on the other hand, continued his stay in Antigua, where he lived for several years before attempting to flee to Cuba in 2021. He was detained in Dominica, and his legal team claimed he was kidnapped, but he was eventually deported back to Antigua. <\/p>\n

After that, he reportedly traveled to Belgium, under the guise of seeking medical treatment for blood cancer.<\/p>\n

The arrest in Belgium
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Choksi’s recent arrest in Belgium marks a significant development in the long-running case. <\/p>\n

Belgian authorities took action after Indian agencies provided evidence and requested his detention based on two open-ended arrest warrants issued by a Mumbai court in 2018 and 2021.<\/p>\n

Also Read | Mehul Choksi arrested by Belgian police; India to seek extradition<\/a><\/strong><\/p>\n

The request followed Choksi\u2019s confirmed presence in Belgium, where he had been undergoing treatment.<\/p>\n

Indian authorities, including the CBI and ED, have been persistent in their efforts to bring him back to India. <\/p>\n

Choksi\u2019s arrest could pave the way for his extradition, though the legal proceedings are expected to be complex and protracted. <\/p>\n

Choksi\u2019s legal team is already preparing to challenge the extradition request, citing his health condition as a primary reason to oppose his return to India. <\/p>\n

The legal battle ahead
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Given the high-profile nature of the case, Choksi\u2019s extradition battle is likely to drag on for some time.<\/p>\n

His defence team has made it clear that they will fight the move by citing medical grounds. They argue that his chronic lymphocytic leukaemia and lymphoma make it dangerous for him to travel, which could delay his extradition process. <\/p>\n

This has been a consistent argument used by him in the past, including during his time in Antigua when he claimed that his medical condition prevented him from returning to India.<\/p>\n

Also Read | Mehul Choksi\u2019s wallet is full…”: PNB scam whistle-blower explains why extradition won\u2019t be easy<\/a><\/strong><\/p>\n

The legal strategy will be multi-layered. Not only will the businessman fight against extradition, but he may also try to secure bail in Belgium, reported ET citing sources.<\/p>\n

However, Indian authorities are expected to vigorously oppose his release, noting the need to bring him back to India to face charges. <\/p>\n

The coming months will likely see a complex legal back-and-forth, with Choksi\u2019s team attempting to delay his extradition while Indian authorities press for his return.<\/p>\n

The financial fallout
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Beyond the extradition efforts, there are significant financial implications tied to Choksi\u2019s alleged crimes. The Enforcement Directorate (ED) has been working to recover the assets linked to the fraudulent activities. <\/p>\n

The agency has already attached assets worth Rs 2,565 crore, including properties, bank accounts, jewellery, and vehicles connected to Choksi and his companies. <\/p>\n

Furthermore, investigations are ongoing to trace and recover the proceeds of crime held by Choksi in foreign countries.<\/p>\n

The ED has identified multiple properties owned by Choksi in countries like Thailand, Dubai, Japan, and the United States, and is working with authorities in those regions to seize and return these assets. <\/p>\n

The hope is that the recovery of these funds will help mitigate the loss faced by the victims of the fraud\u2014primarily the Indian banks that were defrauded in the scam.<\/p>\n

(With agency inputs)<\/em><\/strong>
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Mehul Choksi, a name that has been synonymous with one of India\u2019s biggest banking frauds, has found himself back in the headlines after his arrest in Belgium on Saturday. The fugitive diamantaire, who has been on the run since 2018, is accused of being involved in the over Rs 13,000 crore Punjab National Bank (PNB) […]<\/p>\n","protected":false},"author":2,"featured_media":281311,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"tdm_status":"","tdm_grid_status":"","fifu_image_url":"https:\/\/img.etimg.com\/photo\/118783427.cms","fifu_image_alt":"","footnotes":""},"categories":[602],"tags":[3873,27202,1801,217878,9547,56104,5220,217879,1837,14856,17322,1028,162716,1025,56103,17321,56099,17320,192369,5394,3557],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts\/281310"}],"collection":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/comments?post=281310"}],"version-history":[{"count":1,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts\/281310\/revisions"}],"predecessor-version":[{"id":281312,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts\/281310\/revisions\/281312"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/media\/281311"}],"wp:attachment":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/media?parent=281310"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/categories?post=281310"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/tags?post=281310"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}