Last Updated:April 14, 2025, 08:50 IST

Apart from being wanted by CBI and ED, Mehul Choksi was declared a Fugitive Economic Offender (FEO) by the Government of India.

Fugitive businessman Mehul Choksi | File Image/ IANS

Fugitive diamond merchant Mehul Choksi, wanted by Indian authorities for his alleged role in the Punjab National Bank (PNB) loan fraud case, was detained in Belgium on Sunday.

Reports indicate that Choksi lived in Antwerp, Belgium, with his wife Preeti, who holds Belgian citizenship. He is said to have obtained a residency card to stay in the country.

Sources said that Choksi, who is wanted by both the CBI and the Enforcement Directorate (ED), was detained on India’s extradition request for his alleged involvement in defrauding PNB of over Rs 14,000 crore along with his nephew, Nirav Modi, who is currently lodged in London jail and is contesting his extradition to India.

Local authorities detained the fugitive businessman based on two open-ended arrest warrants issued by a Mumbai court, dated May 23, 2018, and June 15, 2021, reports claimed.

Mehul Choksi And His Alleged Crimes

• PNB Fraud Case: Choksi remains a key accused in the massive fraud involving Punjab National Bank (PNB), along with his nephew Nirav Modi. The scam is valued at around Rs 14,000 crore.
• Use of LoUs and FLCs: Choksi allegedly obtained letters of undertaking (LoUs) and foreign letters of credit (FLCs) by bribing officials from PNB’s Brady House branch in Mumbai. He later used it to secure overseas credit from foreign banks.
• Money Laundering: Investigations by the Enforcement Directorate (ED) and Central Bureau of Investigation (CBI) suggest that Choksi laundered large sums of money through shell companies and dummy entities abroad. In 2022, ED filed its third chargesheet against Choksi, his wife Priti Choksi and others over their alleged involvement in the loan fraud case.
• Criminal Conspiracy and Cheating: Choksi is charged with conspiracy to cheat, criminal breach of trust, and corruption, under various sections of the Indian Penal Code and Prevention of Money Laundering Act (PMLA).
• Declared As FEO: Apart from being wanted by CBI and ED, Choksi was declared a Fugitive Economic Offender (FEO) by the Government of India.

Last month, the Belgian government confirmed Choksi’s presence on its soil, saying that it is giving the matter “great importance and attention".

Speaking about the matter, David Jordens, spokesperson and head of the service for social media and press at Belgium’s Federal Public Service (FPS) Foreign Affairs, said that the government is closely monitoring the case and it is being handled with significant attention.

“I can confirm that the Federal Public Service (FPS) Foreign Affairs is aware of this case and attaches great importance and attention to it. However, we do not comment on individual cases. Furthermore, this case falls under the competence of the Federal Public Service Justice," Jordens was quoted as saying by news agency ANI.

Choksi fled India in January 2018, weeks before the alleged loan fraud case came to light.

Sources suggest that Choksi is expected to seek bail and an immediate release, citing ill health and other reasons. An official confirmation on the same is awaited by New Delhi.

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