Daijiworld Media Network - Mumbai

Mumbai, Apr 30: A local court has issued a non-bailable warrant against fugitive diamantaire Mehul Choksi in connection with a loan fraud case amounting to approximately Rs 55 crore, led by a consortium of banks including Canara Bank.

Choksi, who is also a key accused in the multi-million dollar Punjab National Bank (PNB) “fraud,” was apprehended in Belgium on April 12th following an extradition request from Indian investigative agencies.

The non-bailable warrant was recently issued by Additional Chief Judicial Magistrate (Esplanade Court) R B Thakur.

The court has adjourned the matter until June 2nd for a report on the execution of the warrant.

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

The CBI alleges that the loan was intended for the manufacturing and sale of gold and diamond-studded jewellery. However, the company purportedly did not utilize the funds for these specified purposes.

The agency further alleges that the company defaulted on the loan repayment, resulting in a loss of Rs 55.27 crore to the banking consortium.

Mehul Choksi and his nephew Nirav Modi are the primary accused in the massive Rs 13,500-crore PNB “fraud.” While Choksi is currently contesting his bail in a Belgian court, Nirav Modi has been incarcerated in a London jail since his arrest in 2019.