Fugitive Mehul Choksi Arrested in Belgium After Years on Run
Mehul Choksi, key accused in India’s $1.7B PNB fraud, was arrested in Belgium. The whistleblower who flagged the scam in 2016 reacts to the breakthrough.
From Diamond Magnate to Fugitive: Mehul Choksi’s Arrest in Belgium Marks a Turning Point in India’s Biggest Banking Scam
After nearly a decade on the run, Mehul Choksi — the diamond tycoon turned fugitive — has been arrested in Belgium, offering a glimmer of justice in one of India’s most infamous financial frauds. The arrest, confirmed by Belgian authorities, follows an extradition request by India’s Central Bureau of Investigation (CBI) and years of international efforts to bring Choksi to book.
For whistleblower Hariprasad SV, who sounded the alarm as early as 2016, the moment is bittersweet. “It’s a great day for everyone who was duped,” he said, expressing cautious optimism. “But the real victory will be bringing back the billions he stole — not just Choksi himself.”
A Scandal That Rocked India’s Banking System
The Punjab National Bank (PNB) fraud, first brought to light in early 2018, involved the misuse of Letters of Undertaking (LoUs) to fraudulently secure overseas credit. At the center of the storm were Choksi and his nephew, Nirav Modi, accused of siphoning off more than ₹13,850 crore (about $1.7 billion).
Though Nirav Modi was arrested in the UK in 2019 and remains incarcerated there as his extradition is contested, Choksi managed to evade capture — until now.
His arrest in Belgium comes after Indian authorities intensified their efforts in early 2025, leveraging new intelligence that placed him in Antwerp, where he was reportedly undergoing cancer treatment.
The Whistleblower Who Warned of Trouble
The journey to this arrest began long before the scandal went public. In 2016, Bengaluru-based entrepreneur Hariprasad SV had flagged irregularities in the books of Gitanjali Group, the flagship company controlled by Choksi. After losing nearly ₹10 crore (around $1.2 million) to Gitanjali’s alleged fraud, Hariprasad dug deeper and uncovered a larger pattern of deception.
He filed complaints with the Bengaluru Police in 2015 and escalated the issue to key federal agencies, including the Enforcement Directorate (ED), CBI, SEBI, and the Prime Minister’s Office (PMO). His warnings, however, went largely unheeded.
“I don’t blame the PMO,” he told The News Minute. “They forwarded my letter to the Registrar of Companies, but the system didn’t act quickly or thoroughly. That delay cost the country dearly.”
At the time, Choksi’s companies were securing loans from 31 Indian banks, amounting to nearly ₹9,872 crore, backed by what Hariprasad described as “shockingly inadequate” assets of just ₹25 to 30 crore.
A Fugitive’s International Trail
Choksi’s escape was meticulously planned. In 2017, he acquired Antiguan citizenship under that country’s investor-friendly program. By the time the scam broke publicly in 2018, he had already left India, briefly passing through the U.S. before settling in Antigua.
In 2021, he was arrested in Dominica under controversial circumstances. Indian officials claimed he had tried to flee to Cuba, while his legal team argued he had been abducted from Antigua — a claim that remains contested.
Dominica eventually deported him back to Antigua rather than honor India’s extradition request. For years, that seemed to mark a dead end in efforts to bring him home.
But in 2024, Choksi and his wife Preeti quietly relocated to Belgium, citing the need for advanced cancer treatment. Preeti, a Belgian citizen, has family ties in Antwerp, and both secured F-residency cards earlier this year. These developments triggered renewed diplomatic activity.
The Legal Battle Ahead
Although Choksi is now in Belgian custody, the fight to return him to India is far from over. His legal team is preparing a defense, arguing that extradition would endanger his health and violate his rights. According to legal analysts, Belgium’s asylum and human rights frameworks could offer him temporary relief, even if India’s case is strong.
A source close to his defense told ANI that the team plans to seek bail and may challenge the validity of India’s extradition documentation, citing the deletion of Interpol’s Red Notice against Choksi in 2023 as a pivotal point.
However, Indian authorities remain confident. A senior ED official said they have compiled a watertight case, including evidence from over a dozen countries and testimonies from bank officials and shell company operatives linked to Choksi’s operations.
The Cost of Delay and the Hope for Recovery
Beyond the legal wrangling, the financial fallout of the scam continues to weigh heavily on India’s banking sector. PNB was forced to undergo a massive recapitalization, and the Reserve Bank of India has since tightened regulations surrounding LoUs and similar instruments.
Despite asset seizures and auctions of Choksi’s properties, a significant portion of the defrauded money remains unrecovered. A 2022 report by the Comptroller and Auditor General (CAG) noted that less than 12% of the total amount had been recouped, raising questions about the efficacy of asset recovery mechanisms in cross-border financial crimes.
Hariprasad, while cautiously hopeful, emphasized that “justice is not just about jail — it’s about reparations.” He urged the government to pursue global asset tracing aggressively, noting that “billions are still floating in offshore accounts, luxury real estate, and shadow firms.”
Why This Case Still Matters
In an era where financial frauds frequently cross borders, the Mehul Choksi saga serves as a sobering reminder of the vulnerabilities in global banking oversight. It also highlights the critical role that whistleblowers play — and the systemic failures that often mute their warnings.
Legal experts believe this arrest, even if it doesn’t lead to immediate extradition, sends a strong message to economic fugitives. “There’s no real safe haven anymore,” said international law expert Neha Sharma. “Even in jurisdictions with strong human rights protections, fugitives face growing scrutiny when billions are at stake.”
A Long Road to Justice
Mehul Choksi’s arrest in Belgium marks a pivotal moment in India’s quest for accountability in the PNB fraud. But the road ahead — paved with court proceedings, diplomatic negotiations, and financial recoveries — remains long and uncertain.
For now, there is a renewed sense of momentum. Whistleblowers like Hariprasad, sidelined for years, finally feel vindicated. And a nation weary of financial scandals has reason, at last, to hope that justice, however delayed, might still be delivered.
(Disclaimer: This article is based on currently available reports, official statements, and interviews. Information may be subject to change as legal proceedings continue. Readers are advised to consult official government and court sources for updates on the case.)
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