In 2012, he allegedly rigged stocks in the corporation with a Mumbai-based totally brokerage, Prime Securities, along with other corporations.

They have been suspected of colluding with Punjab National Bank personnel (PNB) within the Rs thirteen 500 crore fraud, the most important rip-off inside the Indian banking records.Įarly on, Choksi got muddled in a securities scam probed by way of the Enforcement Directorate (ED) and the Securities and Exchange Board of India (SEBI). In March 2018, a special PMLA courtroom issued non-bailable arrest warrants (NBWs) in opposition to Choksi and his nephews, Nirav Modi and Neeshal Deepak Modi. However, in a yr’s time, the organization’s inventory nosedived through 90 percent, and the marketplace cap well worth Rs five 000 crores vanished. The enterprise’s marketplace capitalization turned into Rs 6,000 crore. A year before September 2018, when Gitanjali turned suspended from the exchanges, the company stock changed into buying and selling at a regular Rs 600. Top Bollywood stars consisting of Aishwarya Rai, Kareena Kapoor, and Bipasha Basu endorsed the logo. Gitanjali Gems turned into based by Chinubhai Choksi in 1966, and it changed into one of the high jewelers of Mumbai. Moneycontrol could not independently confirm the news. Some lenders have already filed claims on various boards for recoveries. There isn’t any factor in preserving a resolution expert and different infrastructure in the region for a case like this,” one of the bankers stated. “Resources (cash) are treasured to us, and nobody would really like to throw precise cash after bad. Senior bankers informed Business Standard that no different alternative regarded viable. He is presently in Antigua, dealing with extradition.

In simply six years, Gitanjali Gems went from India’s most famous jewelers to facing liquidation. The Mehul Choksi-run firm owes over Rs 12,550 crore to 31 economic creditors and is a key participant within the Rs 14,000-crore PNB scam. Gitanjali Gems is headed for liquidation because the lenders’ committee has voted to cease the decision technique mentioning time over-run.

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