Fugitive businessman Mehul Choksi, accused in the ₹13,000 crore PNB scam, has been detained in Belgium following an extradition request by Indian agencies. Hariprasad SV, who first flagged irregularities in the PNB scam, has hailed this as "great news" for India, saying he is "glad for people cheated by Mehul Chowksi".
Hariprasad SV has urged the government to expedite Choksi's extradition. He said, "It's a really really great news. We are very glad, particularly, not only for India, for all those people who were cheated by Mehul Choksi in India. It's unbelievable how he got caught in Belgium. It's also important that we not only get him back to India but also most important thing to get back is the money he looted, ultimately that is what India needs apart from getting Mehul Choksi back home."
Choksi, who fled India in 2018 had been residing in Antigua. However, according to media reports, he recently moved to Belgium for medical treatment. The Central Bureau of Investigation (CBI) and Enforcement Directorate (ED) had sought his extradition for his involvement in one of India’s largest banking frauds.
The PNB scam
The PNB scam came to light after Hariprasad pointed out discrepancies in the bank’s balance sheets to the Prime Minister’s Office in 2016. Investigations revealed that Choksi and his nephew Nirav Modi fraudulently siphoned off ₹13,500 crore using Letters of Undertaking (LoUs).
These LoUs—guarantees issued by banks to foreign lenders—were fraudulently issued by PNB’s Brady House branch in Mumbai without proper approvals or entries in the bank's system. The funds were routed through multiple international banks.
Impact on PNB and other Banks
When Choksi’s firms defaulted on payments, PNB was forced to pay ₹6,344.97 crore, including interest, to overseas banks that had advanced loans based on fraudulent LoUs. The scam implicated several global banks such as SBI Frankfurt, Axis Bank Hong Kong, and others that lent money based on these guarantees.
