Indian citizen Mehul Choksi, accused of one of the largest bank frauds in India's history, has been arrested in Belgium. This was reported by a source from the Indian Enforcement Directorate to the “Reuters“ agency, News.bg reports.
Indian authorities have already sent a formal request for his extradition. However, Choksi is expected to contest his extradition to India, citing health reasons.
The scandal erupted in 2018 when Punjab National Bank (PNB) - India's second-largest state-owned bank - uncovered an alleged $1.8 billion fraud at one of its branches in Mumbai. The bank filed a complaint with India's Federal Bureau of Investigation (FBI) against several individuals and entities, including Choksi and his nephew Nirav Modi - two prominent diamond merchants.
Choksi, a former CEO of Gitanjali Gems, and Modi were accused of falsifying bank transactions that caused huge financial losses for PNB. Both deny the charges. In a 2018 letter Choksi says "investigating authorities are acting with bias and obstructing justice."
Nirav Modi left India before the details of the scandal came to light. In 2019, he was arrested in the UK, where he remains in custody after losing one of his extradition cases.
Meanwhile, India scored a success in another extradition case last week. A Pakistani businessman with Canadian citizenship wanted for his role in the 2008 Mumbai attacks was returned to the country. His extradition from the United States was the first such case under the anti-terrorism cooperation between the two countries.