A fugitive jeweller, Mehul Choksi, has been arrested in Belgium after being wanted for a massive $1.8 billion fraud case linked to one of India’s largest banking scandals. This arrest comes seven years after the alleged fraud took place, involving the Punjab National Bank, which is India’s second-largest state-run lender.
Choksi, who is the managing director of Gitanjali Gems and the uncle of fellow jeweller Nirav Modi, is accused of defrauding the bank along with several others. The Punjab National Bank had filed a criminal complaint against Choksi and Modi, leading to police charges against them in connection with the case. Both men have denied any wrongdoing.
Choksi’s lawyer, Vijay Aggarwal, stated that they would appeal for his release, arguing that Choksi is undergoing treatment for cancer and is not a flight risk. He emphasized that Choksi has not committed any offense in Belgium.
In 2018, Choksi expressed concerns about the actions of Indian investigative agencies, claiming they were biased and interfering with justice. His arrest follows a lengthy period of evading law enforcement, during which he reportedly frequented Antwerp, a city known for its diamond trade, where he has connections.
Nirav Modi, who fled India in 2018 before the fraud allegations became public, was arrested in the UK the following year and remains in custody there. The ongoing legal battles surrounding this case highlight significant issues of financial fraud and accountability within the banking sector in India.