Indian Jeweller Detained in Belgium Over £1.4bn Bank Fraud Case

Fugitive Indian diamantaire Mehul Choksi has reportedly been detained in Belgium, following an extradition request from the Indian government related to his alleged involvement in a $1.8 billion (£1.4 billion) bank fraud case connected to Punjab National Bank (PNB).

The arrest comes after Indian authorities formally sought Choksi’s extradition, according to Reuters. However, reports suggest that he may contest the extradition on medical grounds. His detention marks a significant development in a case that has spanned several years and multiple countries.

Choksi had been living in Antwerp, Belgium, with his wife after reportedly securing a residency card in November 2023. His presence in Belgium was confirmed just weeks before the arrest.

The case dates back to 2018, when Punjab National Bank — India’s second-largest state-run bank — reported a massive fraud involving unauthorized financial transactions amounting to $1.8 billion at one of its branches in Mumbai. A criminal complaint was subsequently filed with India’s Central Bureau of Investigation (CBI), naming both Choksi and his nephew, Nirav Modi, as the key suspects. At the time, Choksi was the managing director of Gitanjali Gems, a company heavily implicated in the alleged fraud.

After fleeing India, Choksi had been living in Antigua and Barbuda, where he obtained citizenship. He was arrested for illegal entry after leaving Antigua, reportedly to seek cancer treatment. Sources indicated he was preparing to relocate to Switzerland before he was detained in Belgium.

Since 2018, Indian enforcement agencies have been working to extradite both Choksi and Nirav Modi in order to question them about the high-profile bank scam. Modi remains in custody in the UK, where he is also fighting extradition to India.

In December 2024, Indian finance minister Nirmala Sitharaman told Parliament that assets valued at £246 million (approximately ₹2,500 crore) connected to fugitives, including Choksi, had been either recovered or liquidated to help repay the losses incurred due to the fraud.

The detention of Choksi comes shortly after another high-profile extradition case involving Tahawwur Rana — a Pakistani-born Canadian businessman accused of playing a role in the 2008 Mumbai terror attacks. Rana was extradited from the United States to India, marking the first such extradition in a terrorism-related case. The 64-year-old is expected to face trial for his alleged involvement in the attacks that killed over 160 people.