In a significant escalation of its probe into the Rs 13,850 crore Punjab National Bank fraud case, the Enforcement Directorate (ED) has initiated action to seize the overseas assets of diamond merchant Mehul Choksi, a primary accused in the scandal.
According to a report by The Economic Times, the ED has formally engaged authorities in 10 countries—Hong Kong, Singapore, Thailand, the United States, Belgium, China, Italy, Japan, the United Kingdom, and the United Arab Emirates—to secure details of Choksi’s assets, bank accounts, and companies linked to his Gitanjali Group.
Choksi was apprehended in Belgium over the weekend following a request from Indian authorities and is expected to remain in custody for at least a week pending a hearing on his release plea. The ED’s objective is to liquidate Choksi’s foreign holdings to facilitate restitution for victims of the fraud, even as the Central Bureau of Investigation (CBI) intensifies efforts to secure his extradition.
Over the past few months, the ED has dispatched 15 letters rogatory to the countries mentioned above, seeking comprehensive information on Choksi’s financial and corporate dealings. Additionally, letters addressed to Thailand, the United States, Japan, and the UAE specifically request enforcement of provisional orders issued by Indian authorities to seize assets valued at approximately Rs 85 crore.
A senior ED official, quoted by The Economic Times, emphasized the agency’s priority: “The primary goal is to ensure restitution for the victims of the fraud. While the extradition process for Mehul Choksi may be protracted, the recovery of assets must proceed expeditiously.”
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Choksi, who has claimed to be undergoing treatment for blood cancer, is expected to seek bail in Belgium on medical grounds and cite community ties. His release plea is scheduled for a hearing within the week. Should Belgian authorities deem India’s extradition request compliant with local laws, a court will evaluate it based on principles such as dual criminality and other legal criteria. If the court approves extradition, the final decision will rest with Belgian ministerial authorities, sources familiar with the matter told The Economic Times.
Parallel to Choksi’s case, his nephew, Nirav Modi, another key figure in the fraud, remains incarcerated in London as India pursues his extradition. To date, the ED has secured restitution orders worth Rs 2,566 crore for victims and attached assets totaling approximately Rs 1,968 crore. These include 105 immovable properties valued at over Rs 1,600 crore across multiple Indian states, as well as jewellery, diamonds, and precious metals worth Rs 230 crore. Nationwide searches have also uncovered movable assets, including jewellery, estimated at Rs 598 crore, according to agency sources.
India formally requested Choksi’s extradition from Belgium in October last year, prompting his subsequent arrest by local police. In prior communications with a Mumbai court, Choksi, through his legal counsel, cited a blood cancer diagnosis and impending radiation therapy as reasons for his inability to return to India for trial.
As the ED accelerates its global asset recovery efforts and extradition proceedings unfold, the case continues to underscore India’s resolve to address high-profile financial crimes and deliver justice to affected stakeholders.
