Indian jeweler Mehul Choksi arrested in Belgium over bank fraud
Mehul Choksi, an Indian diamond trader and longtime fugitive wanted in connection with one of India’s biggest financial frauds, has been arrested in Belgium, his lawyer confirmed.
Mehul Choksi, 65, is accused of defrauding Punjab National Bank (PNB), a state-owned lender, of nearly $1.8 billion. He was detained on Saturday in Antwerp, Belgium’s diamond capital, following an extradition request by Indian authorities, according to Indian media and the Belgian public prosecutor’s office.
His lawyer, Vijay Aggarwal, said the legal team would file an appeal for his release, citing Choksi’s health and political persecution. “He is not a flight risk and is undergoing treatment for cancer,” Aggarwal told reporters. “This is a politically motivated case, and Indian prison conditions are inhumane.”
Choksi fled India in early 2018, shortly before the Central Bureau of Investigation (CBI) went public with accusations that he and his nephew, Nirav Modi, had used fraudulent letters of undertaking to obtain massive loans for their jewelry businesses.
Authorities allege the pair used fake credit guarantees issued by PNB to secure foreign credit lines, which were never repaid. The scale of the fraud shocked the country, and sparked renewed scrutiny of India’s public banking system.
After leaving India, Choksi acquired citizenship in Antigua and Barbuda, where he fought multiple legal battles to avoid extradition. He was previously detained in Dominica in 2021 after what he claimed was a forced abduction from Antigua. Reports indicate he later relocated to Belgium, where he maintained connections to the diamond trade.
Nirav Modi, once the face of a global luxury brand with stores from Mumbai to New York, was arrested in London in 2019. He has denied wrongdoing and remains in custody in the UK, fighting India’s extradition request.
Both men have denied the allegations.
India’s efforts to repatriate high-profile economic fugitives like Choksi and Modi have garnered significant public and political attention, with critics accusing authorities of lax oversight and delayed enforcement.
The arrest of Choksi in Europe marks a significant step forward in the case. Belgium’s courts will now determine whether he can be extradited to India—a process that could take months or even years, depending on appeals and health assessments.
Indian officials have not publicly commented on the arrest, but media outlets report that the extradition request came through formal diplomatic and legal channels.
The PNB fraud case sparked reforms in India’s banking sector, but also left a lingering perception that elite business figures could exploit systemic weaknesses with little accountability. Public outrage has intensified pressure on the Indian government to ensure prosecution.