PNB Share Update: Mehul Choksi Arrested in ₹13,500 Crore Fraud Case

PNB share price closed at ₹96.65 on April 15, 2025, after news of Mehul Choksi’s arrest in Belgium in connection with the ₹13,500 crore fraud case as reported by The Hindu. Choksi is expected to be extradited to India soon, potentially closing a major chapter in one of the country’s biggest banking scams.

The arrest follows an extradition request made by Indian investigative agencies, the Central Bureau of Investigation (CBI) and the Enforcement Directorate (ED). These agencies have been working to bring Choksi back to India to stand trial.

What Is the Punjab National Bank Scam?

The PNB fraud was first uncovered in January 2018. It involved fraudulent Letters of Undertaking (LoUs) issued by officials at PNB’s Brady House branch in Mumbai. Mehul Choksi and his nephew, Nirav Modi, used these LoUs to obtain overseas loans without sanctioned limits or sufficient collateral as per a News18 report.

The total loss to PNB was pegged at ₹6,344 crore. Other banks, such as the State Bank of India, also suffered exposure due to these fake guarantees.

How was the Fraud Carried Out?

PNB employees misused the SWIFT international banking system to send out unauthorised messages to other banks without recording the transactions in PNB’s internal systems. This prevented the fraud from being detected for years.

The fraudulent LoUs were issued to firms including Diamond R US, Solar Exports, and Stellar Diamonds. These firms were allegedly controlled by Nirav Modi and Choksi. In January 2018, PNB lodged a formal complaint with the CBI. Initially reported at ₹280.7 crore, the scam’s value expanded to over ₹14,000 crore by May 2018 as further investigations revealed additional fraudulent transactions.

Nirav Modi’s Involvement and Flight

Nirav Modi received his first fraudulent LoU in March 2011 and over the next six 6 years, more than 1,200 such LoUs were issued. He fled India before charges were filed and was arrested in London in March 2019.

The ED also discovered that Nirav Modi and his brother Nehal Modi used foreign dummy companies and secure servers abroad to transfer and conceal the funds. The agency has seized assets worth ₹2,362 crore as part of the investigation.

PNB Share Price Performance

On April 15, 2025, PNB share price opened at ₹96.52, slightly above its previous close of ₹96.08. At the end of the day, the share was trading at ₹96.65 on the NSE, reflecting a 0.59% intraday increase.

The stock’s 52-week high of ₹142.90 was recorded on April 30, 2024. It hit 52-week low of ₹85.46 on March 4, 2025.

Conclusion

The arrest of Mehul Choksi marks a significant milestone in India’s pursuit of justice in the PNB scam case. With both Choksi and Nirav Modi facing legal proceedings, Indian authorities appear to be closing in on bringing accountability to one of the most high-profile financial frauds in the country’s history.

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