Mumbai: A special court on Monday allowed Central Bureau of Investigation’s request to issue a proclamation over against Indian diamantaire and former promoter of Winsome Diamonds, Jatin Mehta, his wife Sonia Mehta and son Suraj Mehta in a bank fraud prosecution linked to an alleged loss of Rs 146.35 crore to Canara Bank, but declined to order attachment of properties at this stage.The judge noted that the record shows that non-bailable warrants were issued against the accused and the same were not executed, as they remained untraceable.“….prima facie it is brought on record that in spite of issuance of non bailable warrants against the above named accused persons, they are concealing themselves for avoiding the execution of non bailable warrants and have absconded, therefore the proclamation as provided under Section 82 of CrPC needs to be issued for securing the presence of accused persons,” special judge Nitin V Jiwane said. The investigating agency had sought action under the provisions for proclamation and attachment against persons who could not be traced despite non-bailable warrants.According to CBI, the case began with a complaint lodged by Canara Bank. The prosecution case is that Forever Precious Jewellery and Diamond Ltd, in which Jatin Mehta was a non-executive director, had taken loans from a consortium of banks, including Canara Bank, led by Punjab National Bank. CBI alleged the management committee of Canara Bank sanctioned, on March 19, 2012, a fund-based limit of Rs 12 crore and a non-fund-based limit of Rs 150 crore, including a 20% standby limit. The agency claimed that from the non-fund-based limits, the company opened several standby letters of credit in favour of foreign bullion banks, including The Bank of Nova Scotia, Standard Bank Ltd and Standard Chartered Bank. The gold obtained through those standby letters of credit was later processed and exported to 13 buyers in the UAE, according to the agency. CBI said the company failed to make payment for the imported gold and caused wrongful loss of Rs 146.35 crore to Canara Bank, with corresponding wrongful gain to the accused persons.After investigation, CBI filed a chargesheet. The court had issued a non-bailable warrant against Jatin Mehta on June 14, 2018, and against Sonia Mehta and Suraj Mehta on June 29, 2018. CBI said the warrants could not be executed despite efforts because the three accused were not traceable. During further investigation, the agency found that the three were residing in the United Kingdom. Fresh open non-bailable warrants were issued on April 6, 2022, and extradition requests were forwarded to the United Kingdom, with execution still awaited.CBI also sought attachment of properties, including two properties stated to be in the joint names of Sonia Mehta and Suraj Mehta, and another property in the joint names of Sonia Mehta and her son Vishal Mehta. The agency expressed apprehension that the properties may be disposed of.On the request for attachment, the court found that CBI had not placed sufficient material to support immediate attachment. “CBI has merely raised the apprehension of disposal of property by the accused persons, without putting on record any material to substantiate the said apprehension.” The court also noted that one property, Flat No 901 at Beaumonde, Prabhadevi, was shown in the joint names of Sonia Mehta and Vishal Mehta. “Admittedly, Vishal Mehta is not arraigned as an accused in the present crime and therefore his share in the said property cannot be attached in the present proceeding without giving an opportunity of hearing to the said Vishal Mehta.”Allowing the application in part, the judge said, “I am of the considered opinion that the application filed by CBI for issuing proclamation against accused namely Jatin Mehta, Sonia Mehta and Suraj Mehta under Section 82 of CrPC (Section 84 of BNSS) needs to be allowed.” On attachment, the court said CBI could move an application later in accordance with law.CBI had registered several cases against Winsome and Forever Precious Jewellery and Diamonds Ltd and there was a total financial loss of Rs 4,625 crore. Enforcement Directorate (ED) too had probed a related case and had also moved the special Prevention of Money Laundering Act (PMLA) court in 2019 to declare Jatin Mehta a fugitive economic offender (FEO) under the FEO Act and confiscate his assets. The plea is pending.
