April 11, 2025 — Fugitive businessman Mehul Choksi is at the center of one of India’s largest banking frauds, accused of defrauding Punjab National Bank (PNB) of ₹13,500 crore.
According to investigations, Choksi, along with his nephew Nirav Modi, orchestrated a scheme involving fraudulent Letters of Undertaking (LoUs) issued by PNB officials. These LoUs allowed Choksi’s companies to obtain overseas credit from other Indian banks without providing proper collateral.
By manipulating internal bank systems and bribing certain officials, Choksi managed to bypass critical approval processes. The scam went undetected for years, leading to massive financial losses once it was uncovered in 2018.
Following the revelation, enforcement agencies launched a nationwide investigation, seizing assets and issuing extradition requests. Choksi fled India and later acquired citizenship in Antigua and Barbuda, complicating efforts to bring him back to face charges.
The scandal severely impacted PNB’s financial standing, shook investor confidence, and led to tighter banking regulations across the country.
Legal proceedings against Choksi continue internationally, with Indian authorities pursuing all avenues to secure his return.
