Mehul Choksi, the fugitive Indian diamond merchant at the center of the Punjab National Bank (PNB) fraud case, has been arrested in Belgium, Indian magazine Business Today reported on Monday.
Choksi is accused of defrauding PNB of about 135 billion rupees (about $1.6 billion).
He was taken into custody after India’s Central Bureau of Investigation and Enforcement reactivated extradition requests, despite Interpol earlier removing a red notice against him.
Courts in Mumbai have also issued non-bailable warrants in connection with the case.
According to the Hindustan Times, he is being held in a hospital in Belgium, where he is reportedly undergoing treatment.
His legal team has long argued that he is unfit to travel due to blood cancer. However, Indian officials have argued that his ability to reach Belgium undermined those claims and have supported the extradition case, Business Today reported.
The court proceedings in Belgium are expected to be lengthy, the report said.
The PNB fraud, considered one of India’s biggest banking scandals, involved bank officials fraudulently issuing guarantees that allowed Choksi’s company, Gitanjali Gems, to secure large loans from foreign banks without proper oversight or collateral.
Choksi’s nephew Nirav Modi, also accused of involvement in the PNB fraud, continues to fight extradition from the UK.
Choksi acquired citizenship of Antigua and Barbuda under a citizenship-by-investment program in 2017, shortly before the scandal broke, according to the Hindustan Times.
