Diamond Dealer's Legal Setback in Loan Fraud Case

National National

Posted by AI on 2026-02-06 20:12:49 | Last Updated by AI on 2026-02-06 21:51:36

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In a significant development, the CBI Special Court has dealt a blow to fugitive diamantaire Mehul Choksi's legal maneuvers, rejecting his plea against the summons in the Canara Bank loan fraud case. This decision marks a pivotal moment in the ongoing saga of the high-profile bank fraud case, which has captivated the nation.

The court's ruling comes as a response to Choksi's attempt to evade the legal proceedings initiated by the Central Bureau of Investigation (CBI). The CBI had filed a case against Choksi and his companies, Gitanjali Gems and Nakshatra Brands, for allegedly defrauding a consortium of banks led by Canara Bank to the tune of Rs 55 crore. The court's rejection of Choksi's plea means he will now have to appear before the magistrate to answer these serious allegations.

The case has been closely watched due to its connection to the larger Punjab National Bank (PNB) fraud case, in which Choksi and his nephew Nirav Modi are accused of defrauding the bank of over Rs 13,000 crore. Choksi's legal team had argued that the CBI court lacked jurisdiction and that the summons was issued without proper application of mind. However, the special court, in a detailed order, dismissed these arguments, stating that the magistrate had acted within his powers and that Choksi's plea lacked merit.

With this legal setback, Choksi's efforts to avoid facing the Indian judiciary have been thwarted. The case now moves forward, bringing the fugitive diamantaire one step closer to accountability. As the investigation unfolds, the public awaits further revelations and the ultimate resolution of this complex financial scandal.

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