According to officials, the Central Bureau of Investigation (CBI) has brought a new case against diamond trader and wanted fugitive Mehul Choksi for defrauding a consortium led by Canada Bank out of Rs 55 crore. According to the FIR, Canara Bank and Bank of Maharashtra sanctioned Rs 30 crore and Rs 25 crore in working capital facilities to Mehul Choksi’s Bezel Jewellery India Private Limited as part of a consortium led by Canara Bank.
Choksi’s company diverted its working capital limits after receiving the money from the banks and repaid its long-term borrowings to its parent company in the amount of Rs 18.00 crore.
The FIR filed by CBI stated: ‘It is alleged that despite the loan being granted for the manufacture and sale of jewellery decorated with gold and diamonds, the company has not routed any business transactions through the account since the beginning and transactions which appear in the account are with their group concerns only, which indicate diversion of funds.’
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