Mumbai | A court here has issued a non-bailable warrant against diamantaire Mehul Choksi in the Canara Bank-led consortium loan fraud case involving about Rs 55 crore.

Choksi, a prime accused in the multi-million dollar Punjab National Bank (PNB) “fraud”, was arrested in Belgium on April 12 following an extradition request by Indian probe agencies.

The non-bailable warrant against him was issued recently by Additional Chief Judicial Magistrate (Esplanade Court) R B Thakur.

The matter has been adjourned to June 2 for a report on the warrant.

The Central Bureau of Investigation (CBI) has alleged that the Canara Bank and the Bank of Maharashtra had sanctioned Rs 30 crore and Rs 25 crore, respectively, as working capital facilities under a consortium agreement to Bezel Jewellery.

The loan was granted for the manufacturing and sale of gold and diamond-studded jewellery, but the company allegedly did not use it for the intended purposes, according to the CBI.

The company did not repay the loan, causing a loss of Rs 55.27 crore to the consortium, the agency has alleged.

Choksi and his nephew Nirav Modi are prime accused in the Rs 13,500-crore PNB “fraud”.

While Choksi is fighting for bail in a court in Belgium, Nirav Modi has been in jail in London since 2019.