CBI files fresh case against fugitive Mehul Choksi and others

The Central Bureau of Investigation has filed a fresh case against fugitive diamond trader Mehul Choksi, Gitanjali Gems Limited, Surajmal Lallu Bhai & Company and others for allegedly defaulting on a loan of 25 crore rupees taken from Industrial Finance Corporation of India. In a statement, the CBI said, Choksi had colluded with the valuers to inflate the value of diamonds and jewellery pledged to get the loan. As per the complaint made by IFCI, Choksi had approached it in 2016 seeking 25 crore rupees working capital loan, pledging shares and gold and diamond jewellery. The loan was approved as the pledged jewellery was valued in the range of 34 to 35 crore rupees.
However, as the company started to default on loan payments, IFCI sought a fresh valuation, which revealed that the value had dropped by 90 per cent. IFCI said that the diamonds were of low quality and not real gemstones. IFCI declared the loan as a non-performing asset on June 30, 2018, suffering a wrongful loss of over 22 crore rupees. As CBI continues to investigate the matter, it has searched around eight premises of the valuers in Mumbai and Kolkata, recovering some incriminating documents. Choksi is already a prime accused in the multi-crore Punjab National Bank loan default case, wherein he had used fraudulent letters of undertaking and foreign letters of credit.