The Serious Fraud Investigation Office (SFIO) has filed a prosecution complaint against fugitive businessman Mehul Choksi, his wife Priti Choksi, and several senior banking officials, including former ICICI Bank CEO Chanda Kochhar and the bank’s former executive director NS Kannan, as part of an investigation into a multi-thousand-crore bank fraud, people familiar with the matter said on Monday.

The complaint, submitted to a Mumbai court last month, details the alleged chain of financial irregularities orchestrated by Choksi and his companies, which are accused of defrauding multiple banks of over ₹13,000 crore. Alongside Choksi and his wife, the complaint names former Punjab National Bank (PNB) officers Gokulnath Shetty, Bechu Tiwari, Yashwant Joshi, Prafful Sawant, and key functionaries of Choksi’s business entities.

The companies under investigation include Gitanjali Gems Ltd, Asmi Jewellery India Pvt Ltd, Gili India Limited, Nakshatra Brands Limited, Bezel Jewellery (formerly D’damas), and several Hong Kong-based entities, according to sources familiar with the SFIO’s filings.

SFIO, which is mandated to investigate and prosecute corporate frauds, has scrutinized the roles of both Choksi and bank officials in allegedly facilitating credit facilities and misappropriating funds. The investigation also examined the companies’ actual diamond jewellery operations, use of shell firms to divert funds, and foreign links of the individuals and entities involved.

Chanda Kochhar, who is already under investigation by the Central Bureau of Investigation (CBI) and the Enforcement Directorate (ED) in a separate case involving the Videocon Group, declined to comment. NS Kannan did not respond to calls or messages.

Mehul Choksi, 65, has been in Belgian custody since his arrest on April 11, 2025, following India’s extradition request. He has challenged the extradition in Belgian courts, but all attempts for relief have so far failed. Choksi’s lawyer, Vijay Aggarwal, stressed that the SFIO complaint is not a formal charge sheet and said his clients have the right to a hearing before any court summons. “My clients cannot be termed to be accused of the case. My office will defend them like a rock,” Aggarwal added.

Breakdown of Alleged Frauds

The SFIO has outlined several large-scale frauds involving Choksi and his companies:

• Punjab National Bank (PNB) Fraud (2018–2022): Choksi allegedly defrauded the bank of ₹6,097 crore.
• Gitanjali Gems Fraud: A consortium of 28 banks, led by ICICI Bank, is reported to have been cheated of ₹5,564 crore between 2010 and 2018.
• Nakshatra Brands Fraud: A consortium of nine banks, led by PNB, allegedly lost ₹807 crore.
• Gili India Fraud: PNB was reportedly defrauded of ₹375 crore.

SFIO has been investigating Choksi and his companies since February 2018, immediately after the PNB fraud came to light. By then, Choksi and his nephew Nirav Modi had already fled India with their families.

Legal Implications and Extradition

The SFIO complaint can also be used to support ongoing extradition proceedings in Belgium. India has invoked multiple provisions under the Indian Penal Code, including:

• Section 120B – Criminal conspiracy
• Section 201 – Destruction of evidence
• Section 409 – Criminal breach of trust
• Section 420 – Cheating
• Section 477A – Falsification of accounts

Additionally, sections 7 and 13 of the Prevention of Corruption Act, which cover bribery, are included. These offenses align with Belgian law under the dual criminality clause of the extradition treaty. The extradition request also cites international frameworks, including the United Nations Convention against Transnational Organized Crime (UNTOC) and the United Nations Convention against Corruption (UNCAC).

A SFIO official, who spoke on condition of anonymity, said, “We have looked into all aspects including the role of bank officers, senior management who helped him avail the credit facilities, the actual diamond jewellery business activity of his companies, the use of shell companies to divert funds, and foreign links of the firms and individuals. All findings have been detailed in the prosecution complaint.”

The next hearing of the SFIO complaint is scheduled for April 9, 2026, in the Mumbai court.

Wider Implications

The Choksi case is considered one of India’s largest bank fraud investigations, highlighting systemic lapses in bank oversight, corporate governance, and regulatory enforcement. The involvement of senior bank officials has drawn criticism and intensified scrutiny of India’s corporate lending practices.

The SFIO’s prosecution complaint underscores the complexity of corporate fraud cases that cross multiple jurisdictions, involve high-value financial instruments, and exploit gaps in banking oversight. It also illustrates the ongoing challenges of extraditing economic offenders who have fled India, as well as the coordination required between national and international law enforcement agencies to secure justice.

In the backdrop of this case, both ICICI Bank and PNB have reportedly tightened internal compliance measures and revamped credit risk monitoring to prevent recurrence of similar large-scale frauds.

The Choksi prosecution complaint marks a significant step in India’s legal pursuit of accountability for financial fraud, signaling a renewed focus on corporate governance, bank oversight, and the extradition of fugitives involved in economic crimes.