A special CBI court has ordered a proclamation against billionaire jeweler Jatin Mehta and his wife to compel their appearance in a Rs 146.35 crore fraud case involving Canara Bank. The accused, who are linked to the defunct Winsome Diamonds and Jewellery Ltd, have been absconding for years. The company itself is currently in liquidation with no active business operations.
A special Central Bureau of Investigation court in Mumbai issued a proclamation on Monday against billionaire jeweler Jatin Mehta and his wife, Sonia Mehta. This legal step was taken to compel their appearance in connection with a Rs 146.35 crore bank fraud case involving Canara Bank. The court’s order follows the couple’s failure to respond to multiple non-bailable warrants issued by federal investigators over the last several years.
While the court approved the proclamation, it declined a request from the investigative agency to immediately attach the properties of the accused, citing a lack of sufficient evidence at this stage. The CBI retains the right to file a fresh application for asset seizure as the investigation continues.
For investors and market participants, it is important to understand the financial status of Winsome Diamonds and Jewellery Ltd, the company associated with the promoters. The company has been defunct for several years and is currently undergoing a liquidation process following an order by the National Company Law Tribunal in 2020. The firm reportedly faces total liabilities exceeding Rs 12,000 crore, stemming from defaults to a large consortium of banks.
Due to the company's status and the severity of the governance issues involved, the stock is placed under Graded Surveillance Measure (GSM) Stage 6 on the BSE. This is a high-level surveillance category used by stock exchanges for companies that have ceased operations or are undergoing insolvency, and it effectively restricts trading in the shares. With the company in liquidation, any claims from creditors are expected to involve significant losses, often referred to as haircuts, and the prospects for equity shareholders remain extremely limited.
The case highlights the long-standing efforts by Indian authorities to locate the accused, who have been reported as residing in the United Kingdom or other overseas locations since they left the country. The ongoing legal proceedings are focused on accountability for the massive financial defaults that occurred during the company's operations. Investors should track future updates on the court proceedings and the liquidation process, though these events are unlikely to impact the trading status of the company.