Fugitive diamond merchant Mehul Choksi issued non-bailable warrant in bank fraud case

Choksi, who has other pending warrants issued against him already, is currently detained in Belgium on an extradition request by Indian authorities. The managing director of Gitanjali Gems was arrested in Belgium on April 12, for the pending investigation into his alleged role in the Rs 13,000-crore Punjab National Bank consortium fraud case. Choksi had taken the citizenship of Antigua and Barbuda and fled India just before a First Information Report (FIR) was registered in the alleged PNB scam.

The CBI had filed a chargesheet against seven, including firms linked to Choksi, namely Bezel Jewellery India Pvt Ltd (previously known as D’damas Jewellery), and Gitanjali Gems Limited.

During the last hearing on April 25, four of Choksi’s co-accused sought bail, stating that their custody was not required. The court allowed the bail pleas of Sunil Varma, Vipul Chitalia, Aniyath Nair, and Kapil Khandelwal, who were working with Gitanjali Gems.

The case was filed against them on the complaint of Canara Bank officials who alleged that the sanctioned amount of Rs 55 crore given as a working capital facility to Bezel Jewellery India Pvt Ltd was diverted for other purposes, including for repaying the company’s long-term borrowings. The CBI had booked the accused on charges, including cheating.

Last week, a Belgium court rejected the bail application of Choksi, who had sought to be released pending extradition proceedings but it was rejected. His lawyers had said they would be filing an appeal.