Mehul Choksi to be served non-bailable warrant in loan fraud case

A Mumbai court has issued a non-bailable warrant against diamantaire Mehul Choksi in the Canara Bank-led consortium loan fraud case involving about Rs 55 crore.

Choksi, a prime accused in the multi-million dollar Punjab National Bank (PNB) fraud case, was arrested in Belgium on 12 April, following an extradition request by Indian probe agencies.

The non-bailable warrant against him was issued recently by an additional chief judicial magistrate of Esplanade Court, R.B. Thakur.

The matter has been adjourned to 2 June for a report on the warrant.

The Central Bureau of Investigation (CBI) has alleged that the Canara Bank and the Bank of Maharashtra had sanctioned Rs 30 crore and Rs 25 crore, respectively, as working capital facilities under a consortium agreement to Bezel Jewellery.

The loan was granted for the manufacturing and sale of gold and diamond-studded jewellery, but the company allegedly did not use it for the intended purposes, according to the CBI.

The company did not repay the loan, causing a loss of Rs 55.27 crore to the consortium, the agency has alleged.

Choksi and his nephew Nirav Modi are prime accused in the Rs 13,500-crore PNB fraud case.

While Choksi is fighting for bail in a court in Belgium, has been in jail in London since 2019.