A Mumbai court has issued a non-bailable warrant against diamond businessman Mehul Choksi in a Consortium loan fraud case led by Canara Bank of about Rs 55 crore.
Choksi, the main accused in the millions of dollars of Punjab National Bank (PNB) “fraud”, was arrested in Belgium on 12 April after extradition request of Indian investigative agencies.
Recently, Additional Chief Judicial Magistrate (Asplayed Court) RB Thakur issued a non-bailable warrant against him. The hearing of the case for the report on the warrant has been postponed till June 2.
The Central Bureau of Investigation (CBI) has alleged that Canara Bank and Bank of Maharashtra sanctioned Rs 30 crore and Rs 25 crore respectively as working capital facilities to Bezal Jewelery under a consortium agreement.
According to the CBI, this loan was given for manufacturing and sale of gold and diamond -studded jewelery, but the company did not allegedly use it for intended purposes.
The agency has alleged that the company did not repay the loan, causing a loss of Rs 55.27 crore to the consortium.
Choksi and his nephew Nirav Modi are the main accused in the PNB “fraud” worth Rs 13,500 crore. While Choksi is fighting for bail in a Belgian court, Nirav Modi has been in a London jail since 2019.
