A Mumbai special court has allowed the CBI to rely in a Canara Bank fraud prosecution on 14 witness statements recorded earlier in a separate, connected case. The October 1, 2026 order, reported by Hindustan Times, is a procedural decision—not a finding that any accused person is guilty. The CBI must give the accused copies of the statements it intends to use before the next hearing.
What the court allowed
Special Judge Nitin V Jiwane permitted the CBI to include and rely on 14 statements in the present prosecution, although they had been recorded in another connected case. The statements were recorded before the Additional Chief Judicial Magistrate’s court at Esplanade between April and August 2018.
Hindustan Times reported that the judge’s stated reason was to avoid repeating work already done. The report quotes the court as saying: “Recording of the 14 witnesses afresh would duplicate judicial time and effort.” This quotation is as carried in the newspaper’s account; the signed order was not available for independent review.
The CBI was directed to provide the accused with copies of every statement it proposes to rely on before the next hearing. The report does not give a date for that hearing.
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What this decision does—and does not—mean
The ruling concerns whether the prosecution may rely on material recorded in a related proceeding. It does not decide whether the statements are true, establish guilt, or resolve the alleged bank loss. Nor does the available report identify the precise statutory provision or evidentiary test the court applied.
In practical terms, the reported sequence is: the witnesses’ statements were recorded in the earlier case; the CBI sought to use them in this prosecution; the court permitted that use and required disclosure of copies to the accused before the next hearing. The report does not establish what objections the defence may raise or how the trial court will ultimately assess the statements.
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What the Canara Bank case alleges
The prosecution account reported by Hindustan Times traces the case to a Canara Bank complaint registered in June 2016. Canara Bank had reportedly sanctioned fund-based and non-fund-based facilities worth ₹162 crore to Forever Precious Jewellery and Diamonds Ltd (FPJDL). The company is alleged to have defaulted on gold-loan obligations; bullion banks then invoked standby letters of credit, resulting in an alleged loss of ₹146.35 crore to Canara Bank. These are allegations, not findings of guilt.
The newspaper reported that a CBI charge-sheet filed in June 2018 named Jatin R Mehta, FPJDL, Haytham Salman Ali Abu Obaidah, Sonia Jatin Mehta, Suraj Mehta, Hasmukh L Shah, eight Canara Bank officers and others. It described Mehta as a fugitive diamantaire and promoter of Winsome Diamonds, and said Abu Obaidah represented 13 UAE buyers. These descriptions and the allegations remain distinct from any finding of guilt in the present case.
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Keep the case-specific loss separate from the wider figure
The ₹146.35-crore figure relates to the alleged loss to Canara Bank in this prosecution, according to the newspaper’s account of the CBI case. Hindustan Times also reported a wider group of 16 CBI cases, registered between 2014 and 2019 following complaints by different bank consortium members against Mehta, Winsome Diamonds and Jewellery Ltd, FPJDL and others. Court records were reported to allege fraud of approximately ₹5,500 crore across those matters. That approximate aggregate is not the alleged loss in this individual Canara Bank case.
Status of the Canara Bank officials’ discharge
Hindustan Times reported that Canara Bank’s competent authority declined sanction to prosecute its officials under the Prevention of Corruption Act, after which the trial court discharged the public servants. The report said that discharge had been challenged before the Bombay High Court. It did not establish the later status or outcome of that challenge, so no conclusion about the High Court’s decision can be drawn from the available account.
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What remains unconfirmed
The decision is reported by Hindustan Times, but the underlying signed order and an authoritative case docket were not available for independent confirmation. The exact legal basis for admitting or using the statements, the next hearing date, the statements’ precise evidentiary status, and any later development in the High Court challenge are therefore not established here.
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