Indian billionaire Mehul Choksi, who has been at the center of a $1.8 billion bank fraud case, has been arrested in Belgium following a request from Indian authorities for his extradition.
Choksi had left India in 2018 and had been living abroad ever since, with this latest development bringing new attention to one of India’s biggest financial scandals.
Choksi was taken into custody on Saturday, according to his lawyer Vijay Aggarwal, who confirmed the arrest on Monday. The businessman is accused of defrauding Punjab National Bank (PNB), one of India’s largest public sector banks, through fraudulent transactions involving fake credit guarantees. Choksi has consistently denied all allegations.
His legal team has announced plans to challenge both the detention and the extradition request, arguing that Choksi is not a flight risk and is undergoing serious medical treatment, including care for cancer. His lawyer also said they would argue that the charges are politically driven and that he may not receive a fair trial if returned to India.
Choksi’s arrest comes after two non-bailable warrants were issued by Indian courts in 2018 and 2021. It is still unclear what triggered the Belgian authorities to act at this time, despite these warrants being in place for years. India’s financial enforcement agency and the foreign ministry have not yet responded to requests for comment.
The case links Choksi with his nephew, Nirav Modi, another high-profile diamond trader who is currently held in a London prison and also faces extradition to India. Both men were once celebrated in the luxury jewellery world, with Modi’s creations worn by international celebrities and Choksi’s company, Gitanjali Gems, running thousands of stores across India.
Indian authorities accuse the duo of conspiring with bank staff at a Mumbai branch of PNB to issue fake guarantees for overseas payments. These guarantees allowed them to obtain large sums of money, which were then allegedly diverted and laundered. Investigators believe these fraudulent advances formed the basis of the $1.8 billion scam.
Since fleeing India, Choksi reportedly moved through the United States and later settled in Antigua, where he obtained citizenship. In 2021, he was briefly arrested in Dominica but returned to Antigua after legal proceedings.
The man who first raised alarms about the fraud, entrepreneur Hariprasad SV, welcomed the arrest. He called it an important step toward justice and urged authorities to focus on recovering the stolen money.
This latest move marks a potential breakthrough in India’s efforts to hold high-profile financial fugitives accountable and bring back misappropriated public funds. The extradition process, however, is likely to be lengthy and contested.