In a significant development, the sessions court in Mumbai has overturned the order of the magistrate court, which had acknowledged the chargesheet filed by the Central Bureau of Investigation (CBI) against fugitive diamond trader Mehul Choksi and another individual. The case, registered in relation to an alleged cheating of ₹22 crore from the Industrial Finance Corporation of India (IFCI), has been sent back to the magistrate court for a fresh hearing.
Earlier this year, the magistrate court had issued a process against eight accused, including Choksi's company Gitanjali Gems Ltd, Choksi himself, Vipul Chitalia, Narendra Jhaveri, Pradip Shah, Shrenik Shah, Keyur Mehta, and Aniyath Nair. Nair, through his lawyer Rahul Agarwal, filed a review application before the sessions court, asserting that no case was made out against him. He argued that the documents filed by the CBI in support of its case were inadmissible as evidence and that the cognizance taken based on such documents was legally flawed.
The CBI countered the plea, stating that there was sufficient evidence against Nair and the other accused to establish their involvement in the conspiracy. Previously, Chitalia had also approached the sessions court against the magistrate court's order, resulting in a stay on the proceedings.
The case originated from a complaint filed by the IFCI, alleging that Gitanjali Gems had sought financial assistance in 2016 and induced the IFCI to sanction a corporate loan of ₹25 crore. The company pledged shares, gold, diamond, and gold-studded jewellery worth twice the loan amount. However, when Gitanjali Gems defaulted on the loan repayment, the IFCI invoked the pledge. Due to Choksi's suspended client ID with the National Stock Depository Limited, only a portion of the pledged shares could be sold, resulting in financial losses for the IFCI.
The sessions court found that the magistrate court had not provided a reasoned order when acknowledging the chargesheet and issuing summons to all the accused. It concluded that a fresh hearing was necessary to consider the matter thoroughly.
This development adds another layer of complexity to Choksi's legal troubles, as he faces multiple cases and extradition efforts in connection with various financial frauds. The court's decision to reconsider the chargesheet will likely have significant implications for the ongoing legal proceedings against him and the other accused individuals.
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