Indian jewel magnet held in Belgium over $1.8 billion bank scam
Indian businessman and global precious stone magnet, Mehul Choksi, who is accused of being at the center of India’s biggest-ever bank scam, allegedly defrauding a state-run lender to the tune of $1.8 billion, has been arrested in Belgium.
His arrest followed an extradition request from India, authorities in New Delhi said.
The 65-year-old is accused of being involved in an alleged fraud of nearly $1.8 billion against India’s second-biggest state-run lender by assets, Punjab National Bank (PNB), in 2018.
Other alleged perpetrators in the scam include Choksi’s nephew and fugitive celebrity jewelry designer Nirav Modi, other family members and employees of their jewelry firm, as well as some bank officials.
The scam, considered to be largest bank scam in India’s history, allegedly involved using forged documents to raise credit to buy and import jewels.
Choksi alegedly left India before the scandal came to light.
Indian authorities believe Choksi is likely to challenge his extradition and seek bail on medical grounds.
Choksi’s nephew, Nirav Modi, is also awaiting extradition from London after the UK authorities arrested him in 2019.
The son of a diamond merchant, Modi built an international empire and opened luxury jewelry stores in several major cities around the world.
He also catered to a host of celebrity clients, including actresses Naomi Watts, Kate Winslet and Priyanka Chopra-Jonas.
In 2017, before the alleged fraud, Forbes put Modi’s estimated wealth at $1.73 billion.
Nirav Modi shares the last name with India’s Prime Minister, Narendra Modi, but the two men are not related.
