Union Minister Hails Mehul Choksi’s Arrest as Major Progress in PNB Fraud Case:

Union Minister of State for Finance, Pankaj Chaudhary, referred to the arrest of Mehul Choksi as a “very big achievement” on Monday. He noted that Prime Minister Narendra Modi had already pledged that those involved in defrauding public funds would be held accountable.

Choksi Detained in Belgium After Extradition Request

Authorities in Belgium detained diamantaire Mehul Choksi based on a request from Indian investigation agencies. He is accused in the ₹13,000 crore Punjab National Bank (PNB) fraud case. The Central Bureau of Investigation (CBI) and the Enforcement Directorate (ED) submitted the extradition appeal.

Background and Legal Developments

Choksi had been living in Antigua since 2018, claiming medical treatment as the reason for his travels. Officials say an Interpol Red Notice for his arrest was removed previously, prompting Indian agencies to shift to extradition procedures. Two arrest warrants issued in 2018 and 2021 were submitted to Belgian authorities as part of the case.

Pending Legal Processes and Bail Possibility

Authorities are completing formalities regarding his detention. Choksi may seek bail on medical grounds, according to sources. His legal team has already announced plans to challenge the arrest, citing his health condition, particularly cancer treatment.

Details of the Alleged Fraud

Choksi, his firm Gitanjali Gems, and his associates were charged in 2018 with deceiving PNB. The allegations include illegal procurement of Letters of Undertaking (LoUs) and Foreign Letters of Credit (FLCs) without compliance, causing significant financial losses to the bank.

CBI and ED Investigations Continue

The CBI has filed two charge sheets, while the ED has submitted three prosecution complaints against Choksi. Investigations found that 165 LoUs and 58 FLCs were issued in early 2017, leading to 311 discounted bills. These instruments were central to the fraudulent transactions.

Asset Seizure and Fugitive Status

The ED has confiscated assets worth ₹2,565.90 crore linked to Choksi. The court has approved the monetization of these assets. Meanwhile, Nirav Modi, also a prime accused, remains jailed in London while resisting extradition to India.

Legal Team Reacts

Choksi’s advocate Vijay Aggarwal confirmed an appeal will be filed, citing health-related concerns. The defense is expected to argue that ongoing cancer treatment makes detention unlawful.