Mumbai Court Issues Non-Bailable Warrant Against Mehul Choksi In ₹55 Crore Canara Bank-Led Loan Fraud Case Involving Bezel Jewellery

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

Choksi, a prime accused in the multi-million dollar Punjab National Bank (PNB) ‘fraud’, was arrested in Belgium on April 12 following an extradition request by Indian agencies. The warrant will help the CBI to add one more case to the dossier against him to be presented for his extradition.

The warrant was issued recently by Additional Chief Judicial Magistrate (Esplanade Court) RB Thakur. The matter has been adjourned to June 2 for a report on the warrant.

The CBI has alleged that 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 (India) Pvt Ltd.

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.

The CBI had registered a case against Bezel Jewellery, Choksi (who served as the whole-time director and promoter of the firm), and three other full-time directors – Chetna Jhaveri, Dinesh Bhatia and Milind Limaye – as well as unknown public servants in July 2022.

The case was registered based on a complaint by the chief general manager of Canara Bank’s Circle Office in Mumbai, alleging that the firm had cheated Canara Bank and the Bank of Maharashtra to the tune of Rs 55.27 crore.