In October 2022, Sebi levied a fine of Rs 5 crore on him for indulging in fraudulent trading in the shares of Gitanjali Gems Ltd
New Delhi, NFAPost: Markets regulator Sebi has ordered the attachment of bank accounts and shares and mutual fund holdings of fugitive businessman Mehul Choksi to recover dues totalling Rs 5.35 crore.
The latest decision has been taken after Choksi failed to pay the fine imposed on him in October 2022 by Sebi in a case pertaining to indulging in fraudulent trading in the shares of Gitanjali Gems Ltd.
Choksi, who was the chairman and managing director as well as part of the promoter group of Gitanjali Gems, is the maternal uncle of Nirav Modi. Both of whom are facing charges of defrauding state-owned Punjab National Bank (PNB) of more than Rs 14,000 crore.
Both Choksi and Modi fled India after the PNB scam came to light in early 2018. While Choksi is said to be in Antigua and Barbuda, Modi is lodged in a British jail and has challenged India’s extradition request.
In an attachment notice, Sebi said the pending dues of Rs 5.35 crore include the initial fine of Rs 5 crore, interest of Rs 35 lakh and a recovery cost of Rs 1,000.
To recover the dues, Sebi asked all the banks, depositories — CDSL and NSDL — and mutual funds not to allow any debit from the accounts of Choksi. However, credits have been permitted. Further, Sebi has directed the banks to attach all accounts, including lockers, held by the defaulter.
