Archive · 18 Jul 2025
CBI Court Stays Proceedings Against Choksi in Bank Fraud Case
A special court has paused a case against diamond merchant Mehul Choksi because the first court didn't explain why it was moving forward.
Choksi is accused of taking a loan meant for making jewelry but using the money for something else, causing a loss of 55 crore rupees to the bank.
The lawyers argued the initial decision was made too quickly.
The special court agreed that the first court needed to explain its decision better and will review the case again.
The case is on hold until August 8.
Special CBI court in Mumbai stayed proceedings against Mehul Choksi in a Rs 55 crore loan fraud case.
The magistrate court had issued summons to Choksi and others in April, which was challenged by their lawyers.
The special court found the magistrate's order lacked sufficient reasoning for issuing summons.
The CBI alleges Choksi's company diverted loans meant for jewelry manufacturing, causing a loss of Rs 55.27 crore.
The stay is in effect until August 8, while the special court considers the plea of Choksi's lawyers.
- Who
- Mehul Choksi and others, along with Canara Bank, the CBI, and the special CBI court.
- What
- Special CBI court stayed proceedings against Mehul Choksi in a bank loan fraud case.
- When
- The special court order was issued on Friday, staying proceedings until August 8.
- Where
- Mumbai.
- Why
- The special court paused proceedings because the magistrate court's initial order issuing summons lacked sufficient reasoning.
Accused
CBI & Magistrate Court
Magistrate Order
Accused
The order was passed in a mechanical manner without application of mind.
CBI & Magistrate Court
N/A
- Case Type
- Rs 55 crore Canara Bank-led consortium loan fraud
- Accused
- Mehul Choksi and others
- Court
- Special CBI court
- Original Summons Issued By
- Magistrate court
- Loan Purpose
- Manufacturing and sale of gold and diamond-studded jewellery
- Alleged Loss
- Rs 55.27 crore
- Next Hearing
- August 8
