India, April 14 -- Punjab National Bank (PNB), India's second largest state-run lender by assets, had announced in 2018 that it had discovered a massive fraud, a case that shook the country's financial sector to its core. The alleged fraud, worth Rs.13,500 crore, originated at a single branch in Mumbai and involved high-profile individuals, including billionaire jeweller Nirav Modi and his uncle Mehul Choksi, the managing director of Gitanjali Gems.

Earlier on Monday, Choksi was arrested in Belgium on India's extradition request over his alleged involvement in the PNB loan fraud case.

Nirav Modi and Mehul Choksi allegedly manipulated the bank's systems to obtain fraudulent Letters of Undertaking (LoUs) in collusion with a few rogue bank...