Mehul Choksi’s arrest marks a significant development in an ongoing saga of financial malfeasance linked to state-run Indian banks and high-profile jewelers.
Fugitive Diamond Dealer Mehul Choksi Arrested in Belgium Amid Fraud Allegations
Fugitive Diamond Dealer Mehul Choksi Arrested in Belgium Amid Fraud Allegations
Belgium detains Mehul Choksi, wanted in India for a colossal bank fraud case involving $1.8 billion.
Mehul Choksi, a wealthy diamond dealer and fugitive, has been arrested in Belgium after being sought by Indian authorities for his involvement in a vast financial scandal. The arrest took place in Antwerp over the weekend, as confirmed by his legal representatives on Monday.
Choksi, 65, is accused of attempting to defraud Punjab National Bank of approximately $1.8 billion, a case that uncovered a major controversy once details emerged in 2018. The Indian authorities allege that he fled the country just prior to these disclosures, subsequently residing in the Caribbean and Belgium.
The Belgian public prosecutor indicated that police arrested Choksi at their request, yet specific details surrounding the arrest remain undisclosed. His lawyer, Vijay Aggarwal, disclosed that India's Central Bureau of Investigation has sought Choksi’s extradition back to India, where he faces multiple charges.
Aggarwal emphasized that he would fight for his client’s release, citing Choksi’s deteriorating health and ongoing cancer treatment. He assured the media, stating, “He is not a flight risk,” and highlighted that his medical condition should protect him from detention.
The legal troubles of Choksi are intertwined with those of his nephew, Nirav Modi, who was a leading figure in the jewelry industry until he too became embroiled in the same fraud scandal. Modi was arrested in London in 2019, facing similar allegations and a complex extradition battle with Indian authorities.
The saga of Choksi and Modi has sparked considerable public interest in India, underscoring concerns about the lavish lifestyles of the wealthy elite and the vulnerabilities of taxpayer-funded banks. The pursuit of Choksi and Modi not only represents a quest for justice but reflects broader issues within the financial sector and governance in India.
As the case unfolds, many in India will be watching closely, as this situation may reveal deeper systemic issues within the country’s banking practices. Reporting from Brussels was contributed by Jeanna Smialek, with additional insights from Mike Ives in Seoul.
