Mumbai court issues non-bailable warrant against Mehul Choksi in loan fraud case

A Mumbai court has issued a non-bailable warrant against diamantaire Mehul Choksi in connection with a Rs 55 crore loan fraud case involving a Canara Bank-led consortium. The warrant, issued by Additional Chief Judicial Magistrate R.B. Thakur at the Esplanade Court, marks a significant step in the ongoing legal pursuit of Choksi, who is also a central figure in the Rs 13,500-crore Punjab National Bank (PNB) fraud case alongside his nephew, Nirav Modi.

The Central Bureau of Investigation (CBI) alleges that Bezel Jewellery, a company linked to Choksi, secured Rs 30 crore from Canara Bank and Rs 25 crore from Bank of Maharashtra under a consortium agreement. These funds, intended as working capital for manufacturing and selling gold and diamond-studded jewellery, were allegedly misused, leading to a financial loss of Rs 55.27 crore for the consortium. The CBI claims the company failed to repay the loans and did not utilize the funds for their designated purpose.
The court has scheduled the next hearing for June 2, awaiting a report on the execution of the warrant. Choksi, currently detained in Belgium following his arrest on April 12, 2025, faces extradition proceedings initiated by Indian authorities. His legal troubles are compounded by prior warrants issued in 2018 and 2021 related to the PNB case. Nirav Modi, his co-accused in the PNB fraud, has been imprisoned in London since 2019.

This development underscores the continued efforts by Indian agencies to hold Choksi accountable for alleged financial misconduct across multiple high-profile cases.