In a significant development following the recent arrest of diamantaire Mehul Choksi in Belgium, the Central Bureau of Investigation (CBI) has petitioned a court in India for a Non-Bailable Warrant (NBW) against him concerning a separate fraud case. Choksi, notoriously known as a key suspect in the colossal Punjab National Bank scandal, faces accusations of duping a consortium led by Canara Bank out of Rs 55.27 crore.
Choksi’s arrest on April 12 came as a result of a concerted extradition effort by Indian authorities, with his legal troubles deepening as the CBI launched another offensive by approaching a special CBI court on Wednesday. The agency seeks to secure an NBW to advance the legal proceedings against him in the Canara Bank case.
However, the request encountered a procedural setback as Judge V P Desai redirected the matter to a magistrate’s court, citing lack of jurisdiction in the special CBI court to try cases solely involving private individuals without any public servants, as mandated under the Prevention of Corruption (PC) Act.
The CBI alleges that under a consortium agreement, Canara Bank and the Bank of Maharashtra had provided working capital facilities of Rs 30 crore and Rs 25 crore, respectively, to Bezel Jewellery, a business owned by Choksi. The funds were intended for the manufacturing and sales of gold and diamond-studded jewellery. According to the CBI, Bezel Jewellery failed to conduct its business transactions through the designated accounts, allegedly diverting the funds instead, and subsequently defaulted on the loan, resulting in a substantial financial loss to the banks involved.
This case was transferred to an Additional Metropolitan Magistrate for final disposition, with instructions for the immediate decision on the NBW application.
