Absconding diamond merchant Mehul Choksi, a key accused in the ₹13,000 crore Punjab National Bank (PNB) fraud case, has been detained in Belgium and is set to be extradited to India. The development marks a significant step for Indian investigative agencies seeking to prosecute Choksi, who fled the country in 2018. While the criminal case has drawn international attention, Choksi’s career trajectory and educational background offer insight into how he rose in the diamond industry before facing serious allegations of financial misconduct.
Modest beginnings: The Gujarat college days of a future fugitive
Mehul Chinubhai Choksi was born on May 5, 1959, in Bombay (now Mumbai). He pursued his higher education at G.D. Modi College in Palanpur, Gujarat. There are no records of advanced degrees or specialized professional training, and his academic background is limited to this undergraduate education. However, his early exposure to the family business served as an informal apprenticeship, providing him a direct entry point into the gem and jewellery trade.
Polishing his craft: Choksi’s early foray into the glittering world of diamonds
Mehul Choksi embarked on his journey in the gem and jewellery sector in 1975 by joining his father Chinubhai Choksi’s diamond trading business. Immersed in the intricacies of diamond sourcing, polishing, and trading, he gained hands-on experience that would later inform his business strategies. A decade later, in 1985, Choksi assumed control of the enterprise, rebranding it as Gitanjali Gems. Under his leadership, the company expanded beyond its initial focus on rough and polished diamonds, setting the stage for its evolution into a global jewellery powerhouse.
Global Ambitions: Choksi’s overseas ventures and their downfall
Beyond India, Choksi expanded into global markets, notably the United States. His business interests there included Samuels Jewelers and Voyager Brands, both of which became integral to Gitanjali Group’s international operations. However, these ventures later became subjects of scrutiny. In particular, Samuels Jewelers was investigated by a US bankruptcy court for practices such as misrepresenting lab-grown diamonds as natural stones.
Family Ties: The Choksi clan’s entanglement in a web of deceit
Choksi’s son, Rohan Choksi, played a central role in the group’s US-based operations, often representing Mehul’s interests in American companies. Rohan, along with other family members, was linked to Voyager Brands and held a position of responsibility in Samuels Jewelers. His name also appeared in public notices issued under the Fugitive Economic Offenders Ordinance in India in 2018.
Meanwhile, Mehul’s younger brother, Chetan Chinubhai Choksi, operated Diminco NV, a diamond company in Antwerp. That company defaulted on a loan of $25.8 million from a subsidiary of ICICI Bank and faced litigation in European courts, further entangling the family in legal disputes across jurisdictions.
The Fall of a Titan: How fraud allegations crumbled Choksi’s empire
In January 2018, Indian authorities uncovered the alleged PNB fraud involving Mehul Choksi, his nephew Nirav Modi, and multiple bank officials. The fraud centred on the illicit issuance of Letters of Undertaking (LoUs) and Foreign Letters of Credit (FLCs) without proper collateral or due procedure, resulting in a massive loss to the public sector bank.
Following the exposure of the scam, Gitanjali Gems collapsed under regulatory and financial pressure. The company was delisted, and its assets were either seized or frozen. Investigative agencies, including the Enforcement Directorate and CBI, filed multiple chargesheets implicating Choksi in money laundering, criminal conspiracy, and fraud.
