Divesh Borse decided to let his hair down in Mumbai after selling part of his haul, the Sunday Times newspaper said.
During two evenings at the bar he spent hundreds of dollars as he requested the Bollywood song "Humko Deewana Kar Gaye" (He Made Me Crazy) by nasally balladeer Himesh Reshammiya be played over and over again.
But when a drunk Borse insisted on the song for a third straight evening others in the bar protested, the Times said.
To try and get his way he started showering 1,000 rupee notes on dancers, but hadn't counted on the presence of a police informer, who alerted his handlers.
Borse was arrested carrying diamonds, which he had stolen while carrying out work at the store, worth 3 million rupees ($67,110).
Dance bars, where sari-clad women dance to Bollywood hits for money, were for years the mainstay of Mumbai's notoriously risque nightlife, but were ordered by officials to clean up their act earlier this year.