In a significant development, a Mumbai court has issued a non-bailable warrant against fugitive diamantaire Mehul Choksi, linked to a new loan fraud case concerning a Canara Bank-led consortium amounting to approximately Rs 55 crore. The warrant was issued by Additional Chief Judicial Magistrate R B Thakur at the Esplanade Court.
Mehul Choksi, already a prime suspect in the infamous Punjab National Bank (PNB) fraud involving Rs 13,500 crore, was recently apprehended in Belgium on April 12. His arrest followed an extradition request by Indian investigative agencies as part of broader efforts to bring him to justice.
The fresh allegations against Choksi involve the mismanagement of Rs 55 crore in working capital facilities granted by Canara Bank and the Bank of Maharashtra under a consortium agreement. The funds were intended for the manufacturing and sale of gold and diamond-studded jewellery by Bezel Jewellery, a company linked to Choksi. However, according to the Central Bureau of Investigation (CBI), the funds were not utilized for their designated purpose and the loans were defaulted, resulting in a substantial financial loss to the banks involved.
