In the world of Indian banking scams, Mehul Choksi is a name that frequently makes headlines. After defrauding Punjab National Bank of thousands of crores, he fled abroad to escape justice. Now, this mega-fraudster has finally been arrested in Belgium. The efforts of Indian investigation agencies have paid off, and he’s behind bars at last.
Mehul Choksi is at the center of one of the biggest banking frauds in Indian history. In 2018, the Punjab National Bank scam came to light, involving diamond trader Mehul Choksi, his nephew Nirav Modi, and several bank employees who together orchestrated a ₹13,000 crore fraud that shocked the nation.
On April 12, Belgian authorities confirmed Choksi’s presence in their country and took him into custody. He is currently in jail, according to reports. Officials stated that Choksi was arrested at the request of Indian investigation agencies. Following this arrest, the CBI and ED are expected to request Belgium to hand him over to India.
The scam involved the fraudulent issuance of 165 Letters of Undertaking (LoUs) and Foreign Letters of Credit (FLCs) from PNB’s Brady House branch in Mumbai during March-April 2017. These were issued to Choksi’s Gitanjali Gems without proper cash margins or supervision.
Bank staff bypassed PNB’s central banking system to avoid detection. Through these LoUs and FLCs, Choksi’s companies secured loans from various foreign banks. When the fraud was discovered in 2018, CBI and ED filed cases against Choksi, Nirav Modi, their family members, and involved bank officials.
The recent extradition of 2008 Mumbai attack mastermind Tahawwur Rana from the US to India has raised hopes about Choksi’s return as well. The Indian government is determined to use every legal avenue to bring him back. However, Choksi’s legal team is fighting hard against extradition, citing his health issues, including blood cancer.
Several other economic offenders have fled India after committing massive frauds, like Vijay Mallya, who escaped to London after defaulting on ₹9,000 crore in bank loans. Nirav Modi, already in a London jail.Lalit Modi, accused of financial irregularities during his time as IPL boss
The recent success with Tahawwur Rana’s extradition has renewed hope that economic offenders like Choksi, Nirav Modi, and Mallya will eventually face justice in India under the Fugitive Economic Offenders Act.
-Sanyogita
