Legal Wrangle Over Mehul Choksi's Arrest in Multimillion Bank Fraud

Mehul Choksi, key accused in bank fraud cases, was recently arrested in Belgium. The CBI sought a Non-Bailable Warrant against him concerning a separate fraud case with Canara Bank. Due to lack of jurisdiction under the Prevention of Corruption Act, the case was diverted to a magistrate's court.

Following the arrest of diamantaire Mehul Choksi in Belgium, the Central Bureau of Investigation (CBI) has sought a Non-Bailable Warrant in connection to another fraud case. Choksi, deep in allegations involving massive bank frauds, was targeted by Canara Bank and associates for deceit amounting to Rs 55.27 crore.

The CBI's application for an NBW against Choksi was sent by Judge V P Desai to a magistrate's court due to jurisdiction issues. The judge referenced a Supreme Court judgment, clarifying that a special CBI court requires involvement by a public servant to process under the Prevention of Corruption Act. The charges in question focus solely on private actors, thus redirecting the case.

The CBI claims that, under a consortium agreement, Canara Bank and the Bank of Maharashtra allocated Rs 55 crore for Bezel Jewellery's operations, which were illicitly diverted. The financial conspiracy links Choksi to the infamous Rs 13,500-crore PNB fraud, with his nephew Nirav Modi imprisoned in London.

(With inputs from agencies.)