SEBI attaches bank, demat, MF accounts of Mehul Choksi to recover ₹2.1 crore dues
Markets regulator Sebi has ordered the attachment of bank accounts and shares and mutual fund holdings of absconding diamantaire Mehul Choksi to recover dues totalling ₹ 2.1 crore in a case of violation of insider trading rules in the shares of Gitanjali Gems.
The latest move followed a demand notice issued to Choksi on May 15, warning attachment of assets as well as bank accounts if he failed to make the payment within 15 days.
The demand notice came after Choksi failed to pay the fine imposed by the Securities and Exchange Board of India (Sebi) in January 2022 in a case of violation of insider trading rules in the shares of Gitanjali Gems Ltd.
Choksi, who was the chairman and managing director as well as part of promoter group of Gitanjali Gems, is the maternal uncle of Nirav Modi. Both are facing charges of defrauding state-owned Punjab National Bank (PNB) of more than ₹ 14,000 crore. Both Choksi and Modi fled India after the PNB scam came to light in early 2018.
In April, Choksi was arrested in Belgium following an extradition request by Indian probe agencies. He was located in Belgium last year when he went there for getting medical treatment. He had been staying in Antigua since 2018 after leaving India
Modi was arrested by the Scotland Yard Police in March 2019 and is currently in jail in that country.
In an attachment notice dated June 4, Sebi said the pending dues of ₹ 2.1 crore include the initial fine of ₹ 1.5 crore and interest of ₹ 60 lakh.
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.
Initiating the recovery proceedings, Sebi said there is sufficient reason to believe that Choksi may dispose of the amounts in the bank accounts, mutual fund folios and securities in the demat accounts held with the depositories and "realisation of the amount due under the certificate would, in consequence, be delayed or obstructed".
In its order passed in January 2022, the regulator imposed a penalty of ₹ 1.5 crore on Choksi and restrained him from the securities market for one year.
Sebi had found that Choksi communicated unpublished price sensitive information to one Rakesh Girdharlal Gajera, who sold his entire shareholding of 5.75 per cent in Gitanjali Gems in December 2017 with the intention of avoiding loss ahead of any event which may lead to disclosure of fraudulent issuance of LoUs (letter of undertaking) to Gitanjali Group and magnitude in public domain.
It was noted that fraudulent LoUs were issued on behalf of entities belonging to the Gitanjali Group, including GGL. "Noticee no. 1 (Choksi) was found to have communicated UPSI (unpublished price sensitive information) to Noticee no. 2 (Gajera) without any underlying legal obligation or any legitimate purpose," Sebi had said in its final order.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Mint
37 minutes ago
- Mint
Vijay Mallya credits himself for launching Deepika Padukone, Katrina with Kingfisher Calendar: ‘Picked the right talent'
Ex-businessman Vijay Mallya created a storm on the internet with his first-ever appearance in a podcast. He joined Raj Shamani to talk about his Kingfisher empire, life and more. During the conversation, he also took credit for launching Bollywood actors like Deepika Padukone and Katrina Kaif during their early days through the popular Kingfisher Calendar. Talking about how the careers of the calendar girls took off after posing for him, he proudly declared that he picked the right talent. When asked about the success of the models who rose to fame after appearing in his calendar, Mallya said, "Well, because we chose the right girls. I mean, whether it was Deepika Padukone or Katrina Kaif, we had all the heroines and the stars on the calendar in their younger days.' When noted that these models featured in the calendar weren't celebrities at the time but later became popular, Mallya remarked, 'We picked well, we picked the right talent.' Besides Deepika and Katrina, the calendar also featured popular faces like Yana Gupta, Karishma Kothak, Bruna Abdullah, Nargis Fakhri, Esha Gupta, Lisa Hayden, Saiyami Kher, Sobhita Dhulipala, Nora Fatehi, Shubra Aiyappa, and others. Vijay Mallya fled India in 2016 after being accused in a bank loan default case of over ₹ 9,000 crore. In the interview, he also said that he might come back to India if he is assured of a fair trial. When asked about returning to his country, Mallya said, 'If I am assured, Absolutely I will. I will think about it seriously.' 'But you should also be aware that there are other people who the government of India is targeting for extradition from the UK back to India, in whose case they have got judgment from the High Court of Appeal that Indian detention conditions are violative of the ECHR [European Convention on Human Rights],' he also added. "I'm sorry, and therefore they can't be sent back," he also said. "The plea was basically the prolonged detention without trial, for which we all know there are numerous examples. They just lock you up and throw away the key. That's not justice," he mentioned. Since 2016, Mallya has been staying in London.
News18
an hour ago
- News18
From Sydney To Panama And Canada: The Indian-Origin Man Behind A Global Smuggling Ring
Last Updated: Gurvindar Singh is at the centre of a massive two-year investigation by Australia's Multi Agency Strike Team (MAST) A 42-year-old Sydney-based man of Indian origin, Gurvindar Singh, has been accused of heading an international drug and tobacco trafficking syndicate that spanned multiple continents and used legitimate freight channels to smuggle illicit goods into Australia. Massive Two-Year Probe By Australia's Elite Strike Team Gurvindar Singh is at the centre of a massive two-year investigation by Australia's Multi Agency Strike Team (MAST), a coalition involving the NSW Police, Australian Federal Police (AFP), Australian Border Force, NSW Crime Commission, AUSTRAC, the ATO, and other enforcement bodies. He faces multiple serious charges, including five counts of importing commercial quantities of controlled drugs and illegal tobacco, as well as directing a criminal group and dealing with the proceeds of crime. According to authorities, Gurvindar Singh orchestrated the import of 50 kilograms of cocaine concealed in cement bags from Panama, 280 kilograms of liquid methamphetamine shipped from Canada and over 20 million illicit cigarettes smuggled from the United Arab Emirates, allegedly using a freight company operating out of Punchbowl in southwestern Sydney. Two Canadian nationals of Indian origin, Aman Kang (24) and Mani Singh Dhaliwal (31), were also apprehended. Authorities allege they were recruited by Gurvindar Singh to retrieve and distribute the cocaine shipment. About the Author Mallika Soni When not reading, this ex-literature student can be found searching for an answer to the question, "What is the purpose of journalism in society?" First Published: June 07, 2025, 20:23 IST
Hindustan Times
an hour ago
- Hindustan Times
Gujarat Congress leader arrested for posts on Operation Sindoor
Ahmedabad: Gujarat Congress general secretary Rajesh Soni was arrested on Friday for posting content on social media that was deemed misleading and damaging the morale of India's armed forces involved in Operation Sindoor, police said. The operation, launched last month by the Indian military to target terror hubs in Pakistan and Pakistan-occupied Kashmir (PoK), has been a focal point of national sensitivity, prompting authorities to closely monitor online activities. According to Superintendent of Police (CID-Cyber Crime) Bharatsinh Tank, an FIR was registered against Soni on Thursday over certain posts on Facebook. Along with the May 22 post on Operation Sindoor, police also cited an older post from April 3 last year in the FIR, which HT has seen. The posts undermine the morale of defence personnel and endanger India's sovereignty through misleading information, according to police. Based on a complaint filed by Ajay Swami, 35, a sub-inspector of the cyber crime cell of the Criminal Investigation Department, CID Crime, Gujarat, Soni was charged under sections 152 (acts endangering sovereignty, unity and integrity of India) and 353(1)(a) (statements conducing to public mischief) of the Bharatiya Nyaya Sanhita (BNS), the SP said. Operation Sindoor, launched on the night of May 6-7, 2025, was a high-precision military offensive targeting nine terror camps in Pakistan and PoK in retaliation for the April 22 Pahalgam terror attack that killed 26 civilians. The operation resulted in the deaths of over 100 terrorists, with India repelling subsequent Pakistani counter-attacks. The government has since been monitoring social media for content deemed anti-national or disruptive, leading to multiple arrests across Gujarat. As many as 17 individuals, including Soni, have so far been detained in Gujarat for objectionable posts related to the operation. Gujarat Congress president Shaktisinh Gohil said that Soni was detained by police as if they were catching a terrorist. Criticising the action. Gohil said his party colleague only tried to highlight that soldiers need to get their due credit instead of government spending taxpayers money on publicity.
