CBI Court Upholds Magistrate's Order in Mehul Choksi's Rs 31 Crore Bank Fraud Case
A special CBI court in Mumbai has firmly rejected a plea filed by fugitive businessman Mehul Choksi, challenging a magistrate's decision to take cognisance of a significant cheating and criminal conspiracy case valued at Rs 31 crore, linked to Canara Bank. The court found no merit in Choksi's assertion that the lower court had acted mechanically or without proper application of mind when issuing process against the accused individuals back in April 2025.
Prosecution Opposes Plea as Delay Tactic
The prosecution strongly opposed Choksi's plea, characterizing it as a deliberate attempt to delay and derail the ongoing extradition proceedings initiated against him in Belgium. In a parallel development, the court also dismissed similar pleas from two other accused persons: Vipul Chitalia, a former executive of the Gitanjali Group, and Aniyath Nair, who served as director of Gili India Ltd. Both of these companies were under the ownership of Mehul Choksi at the time of the alleged offenses.
Court's Detailed Reasoning and Legal Analysis
Special CBI Judge J P Darekar delivered a comprehensive ruling, stating that the magistrate's order was "not mechanical, cryptic or without application of mind or without perusing the material on record." The judge emphasized that the order did not suffer from any "impropriety, incorrectness and illegality," concluding that no interference was warranted. The court meticulously noted that the magistrate had passed the order only after thoroughly perusing the chargesheet and identifying sufficient material to justify taking cognisance of the case.
In its analysis, the court referenced established legal principles, highlighting that a magistrate is not required to read the entire chargesheet in exhaustive depth. Instead, the formation of a prima facie opinion is sufficient. "The magistrate has formed prima facie opinion. Thus, it is clear that the magistrate has complied with the legal principles," the court observed, citing provisions laid down by the Supreme Court and various high courts to support its stance.
Background of the Case and Legal Proceedings
Mehul Choksi was arrested by Belgian authorities in April 2025 and is currently detained in a prison located in Antwerp. He subsequently moved the plea before the special CBI court in Mumbai on July 17, 2025, arguing that the magistrate's order was cryptic and lacked reasoned justification. The case, initiated by the Central Bureau of Investigation (CBI), involves serious allegations that Choksi, in collusion with Vipul Chitalia and others, orchestrated a scheme to cheat the Girgaum branch of Canara Bank out of Rs 31 crore.
The agency's special public prosecutor, A Limosin, provided detailed insights into the case, explaining that credit facilities and export proceeds were allegedly diverted to settle the liabilities of the parent company, Gitanjali Gems Ltd. Limosin opposed Choksi's plea vigorously, asserting that the magistrate's order was just and proper. He further clarified that specific roles had been clearly attributed to each accused in the chargesheet, underscoring the thoroughness of the investigation.
Court's Evaluation of Magistrate's Decision
While evaluating the legality of the magistrate's decision, Judge Darekar noted that the lower court had explicitly stated it had perused the final report and all accompanying documents. The judge observed that the order reflected a "reasoned satisfaction" that sufficient material existed to proceed with the case. This careful evaluation reinforces the integrity of the judicial process and underscores the court's commitment to upholding legal standards in complex financial fraud cases.
