The Delhi High Court on Tuesday directed the police to investigate the cheating allegations against Gitanjali Group promoter Mehul Choksi in 2016, PTI reported.

Observing that the investigation had not moved forward because the complainant and the accused were trying to reach an out-of-court settlement, the judge told the police to file a status report. It added that the interim protection from arrest given to Choksi in April 2017 will continue.

The court was hearing a petition by Choksi seeking to quash a First Information Report filed against him in July 2016 based on the orders of a lower court. The complainants, Vaibhav Khuraniya and Deepak Bansal, said Choksi had cheated them by supplying poor quality diamonds.

They alleged that Choksi had assured them of stock worth Rs 3 crore on a security of Rs 1.5 crore for their retail franchise store of Gitanjali Gems. However, in October 2013, they were given diamonds only worth Rs 50 to Rs 70 lakh, they said.

Khuraniya has also filed a petition in the Supreme Court seeking an inquiry by a Special Investigation Team in the Punjab National Bank scam. Choksi and his nephew, jewellery designer Nirav Modi, are among those booked for fraud and accused of cheating Punjab National Bank in a Rs 11,380-crore scam.

The scam involves bank officials allegedly handing out fake Letters of Understanding on behalf of companies associated with him, which allowed him to access massive foreign exchange loans that were completely unsecured.