CBI Seeks Non-Bailable Warrant Against Mehul Choksi in Rs.55 Crore Fraud in Canara Bank, Bank of Maharashtra
In an effort to strengthen its extradition request, the Central Bureau of Investigation (CBI) has asked a Mumbai court to issue a non-bailable warrant (NBW) against fugitive businessman Mehul Choksi. This request is related to a bank fraud case from 2022, where Choksi and his associated companies are accused of causing a loss of ₹55.27 crore to a group of banks led by Canara Bank. A few days Mehul Choksi was arrested in Belgium.
Background of the Case
The CBI has already filed a chargesheet in this case, naming Mehul Choksi, six other individuals, and two of his companies — Bezel Jewellery India Pvt Ltd (earlier known as D’damas Jewellery) and Gitanjali Gems Ltd. The fraud allegedly involved misuse of bank loans that were meant to support the company’s jewellery business.
According to the First Information Report (FIR) filed by Canara Bank, the bank, along with Bank of Maharashtra, had sanctioned ₹30 crore and ₹25 crore respectively to Bezel Jewellery as a working capital loan. But instead of using this money for their business, the company reportedly diverted the funds to repay older loans. This misuse of funds led to major financial losses for the banks.
Why the NBW Now?
Mehul Choksi was arrested in Belgium on April 12, after India made an extradition request as part of the ongoing investigation into the ₹13,000 crore Punjab National Bank (PNB) scam. In order to support this request, the CBI is now trying to get an open non-bailable warrant against him in the 2022 case as well.
On Wednesday, the CBI moved a special court in Mumbai asking for the warrant. However, Special Judge V P Desai transferred the case to a magistrate court, stating that since no public servants were involved, the Prevention of Corruption Act doesn’t apply. Hence, the magistrate court has jurisdiction over the case and will also handle the NBW request.
What Happens Next?
The CBI mentioned the matter in the magistrate court on Thursday, and the plea is expected to be heard within the next two weeks. This warrant, if issued, would add to the list of pending cases and warrants against Mehul Choksi, who is already wanted in other investigations by the CBI and the Enforcement Directorate (ED). The extradition request sent to Belgium also includes full details of all pending cases and arrest warrants against him, which further supports India’s demand to bring him back for trial.
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