On treatment with ethyl diazo acetate 1c, we isolated the diiodo 6c product, where diazo displaced by diiodo, there is no cyclic product 7c were isolated. Independently the 7c were prepared by using iodine metal were reported , The plausible explanation is, that we used excess (4.5 equivalent) of lithium iodide for preparation of CSI2, irrespective of substitution on diazo substrate, the Iodide ion is more reactive then CSI2, to give the gem-diiodo product.