Arrest of Indian Fugitive Jeweller in Belgium: A Twist in PNB Fraud Saga

Mehul Choksi, the jeweller accused of a massive $2 billion fraud involving Punjab National Bank, has been arrested in Belgium. His extradition is requested by India but is expected to be contested on medical grounds. The case links to a significant financial scandal impacting India’s banking sector.

In a significant development, Mehul Choksi, the jeweller implicated in a $2 billion fraud case, has been apprehended in Belgium. Choksi had previously evaded law enforcement authorities following allegations tied to the Punjab National Bank (PNB) scandal. The Indian government, eager to bring him to justice, had already initiated an extradition request before the arrest, though Choksi may resist extradition citing health concerns.

The PNB scandal significantly tarnished the reputation of India's second-largest state-owned bank. In 2018, PNB made headlines when it disclosed fraudulent transactions amounting to $1.8 billion at its Mumbai branch. The bank took legal action against several accused, including Nirav Modi and Choksi, a former director of Gitanjali Gems, accusing them of orchestrating the fraud.

In a related judicial move, New Delhi received a controversial figure last week. A businessman of Pakistani-Canadian origin, who allegedly played a role in the 2008 Mumbai attacks, was extradited by the U.S. This marks the first such extradition in a terrorism case, adding another layer to complex international legal breakthroughs.

(With inputs from agencies.)