Fugitive jeweller wanted over $1.8bn Indian bank fraud arrested after seven years
A fugitive jeweller wanted over an alleged $1.8bn fraud case has been arrested in Belgium.
Mehul Choksi is sought over one of India’s biggest ever bank frauds, which took place seven years ago.
The alleged fraud involved a single branch of Punjab National Bank, India’s second largest state-run lender.
The bank had filed a criminal complaint with India’s federal investigative agency against several entities including billionaire jeweller Nirav Modi and Choksi, his uncle and the managing director of Gitanjali Gems GTGM.NS, saying they had defrauded PNB.
Police filed fraud charges against Choksi, Nirav Modi and others in connection with the alleged fraud.
The two diamond tycoons have denied any wrongdoing.
Choksi’s lawyer Vijay Aggarwal told Reuters on Monday: “An appeal will be filed for his release, on grounds that he is
undergoing cancer treatment and is not a flight risk.”
He said that Choksi had not committed any offence in Belgium.
In a letter in 2018, Choksi said the “investigating agencies were acting with pre-determined minds and interfering with the course of justice”.
His lawyer told local media on Monday that he would be appealing for his release, citing ill health and ongoing treatment for cancer.
Nirav Modi fled India in 2018 before details of his alleged role in the case became public. He was arrested in the UK the following year and remains in British custody.
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He grew up in Belgium’s diamond polishing hub Antwerp, and Choksi used to visit the city frequently, even before the financial scam was discovered.
Diamond traders in Mumbai have said Antwerp would have been an ideal place for Choksi to take refuge, as he knows people there and remains connected to those in the business.