CBI Court Halts Proceedings Against Mehul Choksi in Rs.55 Crore Bank Fraud Case

A special CBI court has temporarily stopped legal proceedings against Mehul Choksi, a fugitive businessman, in a bank fraud case related to a scam of ₹55.27 crore. This case involves a group of banks led by Canara Bank and Bank of Maharashtra, who were allegedly cheated by Choksi and others in 2022.

The FIR was based on a written complaint from the Chief General Manager of Canara Bank. The complaint said:

• Choksi’s company, Bezel Jewellery (India) Pvt Ltd, was involved in fraudulent transactions.
• The company defaulted on loan payments and diverted bank funds.
• Instead of using export payments properly, the money was transferred to Gitanjali Gems Pvt Ltd, another company owned by Choksi, to cover up its overdraft.

Why Did the Court Stop the Case for Now?

The court found problems in the way the lower court (Esplanade court) handled the case. When the Esplanade court issued summons (an official call to appear in court) to Choksi and the other accused, it did not give clear reasons for doing so. The CBI court said that proper reasons must be given before summoning someone, especially in a serious case like this.

What Did Choksi’s Lawyer Say?

Choksi’s lawyer, Advocate Vijay Agarwal, filed an application saying that the Esplanade court’s decision was hasty and careless. He claimed the judge issued the summons on the same day the CBI filed the chargesheet, without even reading the full document, which runs into thousands of pages.

The lawyer said that such an important decision should not be taken without careful study of the case and the documents.

Timeline of Events

• April 17, 2025: Esplanade court issued summons to Choksi and five others after the CBI filed a chargesheet.
• April 19, 2025: A non-bailable warrant was also issued against Choksi.
• July 2022: CBI had filed an FIR against Choksi and others based on a complaint from Canara Bank.

What Did the Special CBI Court Say?

Judge JP Darekar said that the Esplanade court did not give proper reasoning while issuing the summons. Even though the court mentioned that there was enough material to move forward, it failed to explain the basis of that decision clearly.

The special CBI court has now:

• Paused further proceedings against Mehul Choksi and co-accused Aniyath Nair until August 8.
• Directed the CBI to file a detailed reply to Choksi’s lawyer’s application.

This means that the case is not dismissed but put on hold for now, and the court is asking for proper legal procedure to be followed before continuing. More details will be released soon.