Mumbai: A court here has issued a non-bailable warrant against diamantaire Mehul Choksi in the Canara Bank-led consortium loan fraud case involving about ₹55 crore.

Choksi, a prime accused in the multi-million dollar Punjab National Bank (PNB) “fraud”, was arrested in Belgium on April 12 following an extradition request by Indian probe agencies.

The non-bailable warrant against him was issued recently by Additional Chief Judicial Magistrate (Esplanade Court) R B Thakur.

The matter has been adjourned to June 2 for a report on the warrant.

The Central Bureau of Investigation (CBI) has alleged that the Canara Bank and the Bank of Maharashtra had sanctioned ₹30 crore and ₹25 crore, respectively, as working capital facilities under a consortium agreement to Bezel Jewellery.

The loan was granted for the manufacturing and sale of gold and diamond-studded jewellery, but the company allegedly did not use it for the intended purposes, according to the CBI.

The company did not repay the loan, causing a loss of ₹55.27 crore to the consortium, the agency has alleged.

Choksi and his nephew Nirav Modi are prime accused in the ₹13,500-crore PNB “fraud”.

While Choksi is fighting for bail in a court in Belgium, Nirav Modi has been in jail in London since 2019.

PTI