PNB Loan Fraud: Belgium Confirms Mehul Choksi’s Arrest Following India’s Extradition Request

The Belgium government has confirmed the arrest of Mehul Choksi, a fugitive jeweler involved in the Punjab National Bank (PNB) loan fraud case. Choksi, wanted for his alleged involvement in defrauding the bank of Rs 13,000 crore, was arrested in Antwerp on April 12, 2025, following an extradition request from Indian authorities.

Choksi fled India in January 2018 and had been evading justice for his role in the fraudulent activities that saw the issuance of fraudulent Letters of Undertaking (LoUs) and Foreign Letters of Credit (FLCs) by PNB officials, causing significant financial losses to the bank. Both Choksi and his nephew, Nirav Modi, have been booked by the Central Bureau of Investigation (CBI) and Enforcement Directorate (ED) for the PNB fraud.

Extradition Request and Legal Proceedings The arrest follows multiple legal proceedings and India’s request for Choksi's extradition under the India-Belgium extradition treaty. Choksi’s lawyer has already announced plans to appeal the decision, citing medical grounds as a reason for seeking bail, as Choksi is reportedly undergoing cancer treatment in Belgium.

Indian authorities have welcomed the arrest as a significant step toward holding economic offenders accountable and recovering the defrauded funds. The CBI and ED continue to press for his extradition to face charges in India.

The PNB Loan Fraud Case: Key Facts Choksi, along with his companies, was accused of cheating and misappropriation by PNB. The fraudulent LoUs allowed his firms to access large sums of money without adequate collateral, which was then used for personal gains. When the PNB began to default on these payments, they were forced to pay Rs 6,344 crore, including overdue interest, to overseas banks that had been duped by the fraudulent transactions.

The Fugitive Economic Offenders Act was invoked by India, aiming to seize the properties of Choksi, including his assets in Antigua and Barbuda, where he had previously taken citizenship.

Cybercrime and Economic Offenses: Legal Perspective 

Legal experts, from NYK Law Firm, emphasize the importance of cybercrime laws and economic offense regulations in dealing with international fraud and money laundering cases. “Mehul Choksi’s arrest marks a key moment in the fight against financial fraud and highlights the growing international cooperation in tackling economic crimes,” said a representative from the firm.

As the extradition proceedings continue, Choksi's case serves as a reminder of the challenges posed by cross-border economic crime and the crucial role of international legal frameworks in ensuring accountability.

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