Court Halts Mehul Choksi Fraud Case: A New Twist

A special CBI court has halted proceedings against Mehul Choksi in a Rs 55 crore bank fraud case until August 8. The stay came after accusations that a magistrate court hastily summoned defendants without proper review. The charges link Choksi to loan misuse causing significant financial losses.

A special CBI court has halted ongoing proceedings against the well-known diamantaire Mehul Choksi until August 8. The action stems from a Rs 55 crore loan fraud case led by a consortium headed by Canara Bank.

The initial summons were issued by a magistrate court upon the CBI's chargesheet filing. However, Choksi's legal team contested that the summons were issued mechanically and without due diligence.

Stay of proceedings was granted after the special CBI court noted an apparent lack of reasoning in the magistrate court's order. Subsequent to this, a notice was also served to the CBI for their input regarding the plea.

(With inputs from agencies.)