CBI seeks NBW against Mehul Choksi in Canara Bank cheating case

Mehul Choksi, a prime accused in the alleged multi-million dollar Punjab National Bank fraud, was arrested in Belgium on April 12

Days after diamantaire Mehul Choksi was arrested in Belgium, the CBI approached a court here seeking a Non-Bailable Warrant against him in another case where he and others are accused of cheating a Canara Bank-led consortium of Rs 55.27 crore.

Choksi, a prime accused in the alleged multi-million dollar Punjab National Bank fraud, was arrested in Belgium on April 12 following an extradition request by Indian probe agencies. The Central Bureau of Investigation, probing the Canara bank cheating case, approached the special CBI court here on Wednesday seeking an NBW against him.

However, judge V P Desai sent the matter to a magistrate's court, saying his court had no jurisdiction.

 

The judge cited a Supreme Court judgement which states that for a special CBI court to try a case under the Prevention of Corruption (PC) Act, there must be alleged involvement of a public servant. In the present case, the charge sheet was filed only against private persons for offences under Indian Penal Code sections 120 B(criminal conspiracy) and 420 (cheating). Hence, the PC Act did not come into the picture and the case should go to a magistrate, the judge said. The entire CBI case including the application for NBW was transferred to an Additional Metropolitan Magistrate for its final disposal.

The NBW application should be decided forthwith, the special court said.

As per the CBI case, Canara Bank and the Bank of Maharashtra had sanctioned Rs 30 crore and Rs 25 crore, respectively, as working capital facilities under consortium agreement to Bezel Jewellery. The loan was for the manufacturing and sale of gold and diamond-studded jewellery, but the company did not route any of the business transactions through the account to hide diversion of funds, the CBI claimed. It did not repay the loan, causing a loss of Rs 55.27 crore to the consortium, the agency alleged.

Choksi and his nephew Nirav Modi are prime accused in the 13,500-crore PNB scam.

Nirav Modi is lodged in a jail in London since 2019.