CBI Court Orders Proclamation Against Jatin Mehta in Rs 146-Crore Bank Fraud Case

A special CBI court here on Monday ordered the issuance of proclamation against billionaire jeweller Jatin Mehta, his wife Sonia Mehta and another accused in an alleged Rs 146.35-crore bank fraud involving Canara Bank, while declining to order the simultaneous attachment of their properties.

Special Judge Nitin V Jiwane allowed the Central Bureau of Investigation's plea to issue proclamations under the relevant provisions of the Code of Criminal Procedure (CrPC) to secure the presence of the accused, who have allegedly been absconding.

The CBI had sought the attachment of properties belonging to Mehta, his wife and two others, expressing apprehension that they might dispose of their assets. However, the court observed that the agency had not placed any material on record to substantiate its apprehension, as required under Section 83 of the CrPC.

The court said the CBI could file a fresh application for property attachment in accordance with the law.

According to the CBI, Mehta's company, Winsome Diamonds and Jewellery Ltd, purchased gold from three overseas bullion banks Bank of Nova Scotia, Standard Bank and Standard Chartered Bank against guarantees issued by the Indian bank.

The gold was subsequently processed and sent to 13 buyers in the United Arab Emirates, the agency alleged.

The company allegedly failed to make payments for the imported gold, citing non-receipt of export proceeds from foreign buyers. This led the bullion banks to invoke the standby letters of credit (SBLCs), resulting in an alleged wrongful loss of Rs 146.35 crore to Canara Bank, the CBI said.

The court noted that non-bailable warrants issued against the accused in June 2018 could not be executed as they remained untraceable. Further investigation indicated that they were residing in the United Kingdom, it said.

Observing that the accused appeared to be concealing themselves to avoid arrest, the court held that issuing proclamations was necessary to secure their presence in the proceedings.

The order did not grant the CBI's request for immediate attachment of the properties.