PNB Fraud Case: Meet Mehul Choksi, Nirav Modi's Uncle And They're Booked In Rs. 13,500 Crore Scam

Mehul Choksi is a renowned diamond trader who has finally been arrested in the Punjab National Bank (PNB) loan fraud case. The news of his arrest had created a stir in India because of the Rs. 13,000 crore fraud case in which he was involved. Mehul was in Belgium when the international agencies arrested him on April 12, 2025, on a plea from Indian agencies, including the Enforcement Directorate (ED) and Central Bureau of Investigation (ED). What followed was a non-bailable warrant issued by the agencies against Mehul Choksi. 

Who is Mehul Choksi? Meet the diamond trader, who has been arrested in connection with Rs. 13,000 crore fraud loan case

For the uninitiated, Mehul Choksi has been a fugitive since 2018, and he was detained after years of chase on April 12, when he was in a hospital in Belgium. Mehul Choksi was living with his wife, Preeti Choksi, in Belgium. Once the Belgian government confirmed Mehul's presence on its soil, the Indian authorities requested their assistance in catching India's most wanted fugitive businessman.

According to a report in India Today, Mehul Choksi was planning to move to Switzerland from Belgium for cancer treatment. Mehul and his wife, Preeti, have been living in Belgium's Antwerp after securing their residency in Belgium many years ago. After the arrest of Mehul Choksi, as per a report in the Associated Press, the diamond trader gave misleading documents in the residency process to escape extradition to India. Sources close to AP suggested:

"Choksi submitted false declarations and forged documents to Belgian authorities and misrepresented his nationality in his application process, failing to disclose the details of his existing citizenship of India and Antigua."

Punjab National Bank scam of Rs. 13,500 crore explained: From Mumbai's single branch to the involvement of big sharks like Nirav Modi and more

Talking about the alleged PNB loan scam worth Rs. 13,500 crore, Mehul Choksi and Nirav Modi manipulated the bank systems to collect some fraudulent Letters of Undertaking (LoUs). The duo reportedly made it happen with the help of some rogue bank officials. PNB filed its first fraud report in January 2018 and its second in February 2018. An FIR was also registered against some biggies, including Gitanjali Group, Chandri Paper & Allied Products Private Limited, and Nirav Modi Group.

According to a report in the Hindustan Times, LoUs became the central instrument in the PNB scam because they weren't issued against general retail transactions but for trade or business transactions. The report further stated that Mehul Choksi's nephew, Nirav Modi, obtained 1,212 guarantees. The fraud was undetected by anyone for years

However, when the fraudulently acquired guarantees worth Rs. 11,400 crores were allegedly diverted and laundered instead of used for pearls, it caught the bank's attention. Before the scam was publicly exposed, Mehul Choksi fled India with his wife, Preeti Choksi and children. The diamond trader was reportedly spotted in Antigua and Barbuda after he reportedly obtained its citizenship.

Who is Mehul Choksi's wife, Preeti Choksi? She was named in ED's charge sheet over her alleged involvement in Rs. 13,500 crore loan fraud

Mehul Choksi has involved his wife, Preeti Choksi, in the alleged PNB loan fraud case. As per a 2022 News18 report, she was allegedly involved in the Rs. 13,500 crore loan fraud case. As per the agency, Priti was the biggest 'beneficial owner' for allegedly siphoning off funds obtained by the couple through fraud in the PNB. In its third chargesheet, the central agency mentioned Priti Choksi's name, and ED released an official statement alleging that Priti and Mehul worked together in the PNB fraud case. An excerpt from the statement can be read as:

"She (Preeti Choksi) was aware of the source of monies which were being routed/siphoned by her husband (Mehul Choksi) illegally and fraudulently. She was abettor of the crime thereby being actually involved in the laundering of proceeds of crime."

It will be interesting to see how things unfold in the coming days. What are your thoughts on Mehul Choksi's arrest and the entire PNB Rs. 13,500 crore case, including Nirav Modi and other big names? Let us know.

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