In a significant turn of events, the Supreme Court has revived a cheating case against fugitive businessman Mehul Choksi and his wife Priti Choksi, overturning a 2017 high court decision that had dismissed the case. This setback comes in addition to their involvement in the Punjab National Bank (PNB) scam, where they are accused of defrauding the bank of over ₹14,000 crore.

The case in question stems from a First Information Report (FIR) filed in Gujarat in 2015, accusing Mehul Choksi and his wife of forgery and cheating in a business transaction involving 24-karat pure gold bars valued at ₹30 crore. The recent Supreme Court decision on November 29, by a bench comprising Justices Sanjiv Khanna and SVN Bhatti, directs the police to resume the investigation, emphasizing that their remarks should not be seen as comments on the case's merits.

The court stressed the need for the investigating officer to consider interpretations provided by various courts concerning sections 406, 420, 464, and 465 of the Indian Penal Code during the investigation. It highlighted that a detailed factual examination by the high court in 2017 was premature, especially when the investigation was ongoing.

The core of the dispute involves contested issues of fact regarding the legality and binding nature of agreements dated July 25, 2013, and August 13, 2013, concerning Mehul Choksi's company, Geetanjali Jewellery Retail Limited (GJRL). The complainant, Digvijaysinh Himmatsinh Jadeja, alleges that Mehul Choksi and his wife committed to returning the gold bars under the August 13, 2013, agreement.

The Supreme Court refrained from delving into the disputed facts, emphasizing that such aspects should be examined during the investigation. It also highlighted that the high court's decision to quash the FIR was premature and contested the detailed examination conducted.

The court noted progress in the investigation after the FIR, where statements under sections 161 and 164 of the Code of Criminal Procedure were recorded. However, the high court had not considered these in its decision.

The Supreme Court clarified its position on observations made by the high court regarding Priti Mehul Choksi's involvement, stating that such details would be clarified during the investigation, and premature comments should be avoided.

The FIR, lodged in 2015 by Jadeja, alleged non-return of 105 kg of gold bars and failure to pay a minimum guarantee of ₹19.42 crore. Mehul Choksi and his wife sought to quash the FIR, arguing it should be treated as a civil dispute, a stance the high court accepted in 2017. Dissatisfied, Jadeja approached the Supreme Court, leading to the recent decision to reinstate the cheating case.

Case: DIGVIJAYSINH HIMMATSINH JADEJA vs. THE STATE OF GUJARAT & ORS,

CRIMINAL APPEAL NO.3259/2023.

Click here to read/download judgment.