A special CBI court in Mumbai on Friday banned the process and non-bailable warrant (NBW) against the absconding diamond businessman Mehul Choksi in a loan fraud case of Rs 55 crore linked to Canara Bank.
The case registered by CBI’s Bank Securities and Fraud Branch (BSFB) on July 12, 2022 was based on the complaint lodged by Cenra Bank Chief General Manager P. Santosh. It accused Choksi, his companies, colleagues and some unknown public servants of cheating to be approved working capital facilities to Bezel Jewelery (India) Private Limited under a union led by Canara Bank and Bank of Maharashtra.
Challenge of lower court order
In April this year, a magistrate court issued a new non-bailable warrant against Choksi. Currently, Choksi, imprisoned in Belgium, challenged this order through advocates Vijay Aggarwal, Rahul Aggarwal and Jasmine Old. His co-accused, the then Assistant General Manager of Gitanjali Jewels, Aniaath Shivraman Nair also filed a criminal revision petition.
Vijay Aggarwal, who is representing both the accused, argued that the magistrate court has passed a ‘mysterious order to issue a procedure’. He said that the court issued a procedure without thinking and this is a violation of sections 190 and 204 of CRPC. Aggarwal further said, “This order is without any logic, so it should be stopped.”
CBI Public Prosecutor Vikram Singh opposed the request of interim relief.
What did the CBI court say?
Special Judge JP Darekar, after reviewing the record and magistrate’s order, found that the lower court failed to issue rational orders. The judge said, “Although the lower court has found that adequate material is available in the records for issuing the process against the accused, but the order has not given full reasons completely.”
Citing an example of the Supreme Court, Judge Darekar said, “At first sight the order accused does not show that the lower court had formed an opinion on the basis of the material present in the charge sheet.”
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The court further emphasized the importance of logical orders and said, “This reason is necessary not only for the litigants, but also for the High Courts, so that they can understand the idea process of the lower court. The court expects a brief outline of the reasons at least the reasons that the lower court decided to issue summons in the case.”
In view of these statements, the court stayed further proceedings in the lower court against Choksi and Nair till the next hearing. The CBI court directed that by its order, the magistrate should be told to the court and gave the agency time till August 8 to file a reply.
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