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 Mr. 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 Mr. 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.
Mr. 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 Mr. Choksi and Mr. Modi fled India after the PNB scam came to light in early 2018.
In April, Mr. 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.
Mr. 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 Mr. 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 Mr. 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 Mr. Choksi and restrained him from the securities market for one year.
SEBI had found that Mr. Choksi communicated unpublished price sensitive information to one Rakesh Girdharlal Gajera, who sold his entire shareholding of 5.75% in Gitanjali Gems in December 2017 with the intention of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.
Through such activities, the two persons had violated the provisions of the PIT (Prohibition of Insider Trading) rules. In May 2023, SEBI sent a notice to Mr. Choksi directing him to pay ₹5.35 crore in a case pertaining to fraudulent trading in the shares of Gitanjali Gems.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Mint
41 minutes ago
- Mint
Will the ₹500 note be banned? Indian government clarifies as reports emerge over ‘demonitisation' 2026 claims
The Government of India, in its social media fact-checking handle on platform X, clarified that the claims about an upcoming alleged 'demonetisation' in March 2026 were false and that they were an attempt to spread misinformation among the masses through social media platforms. According to the official PIBFactCheck post released on Tuesday, 3 June 2025, a video went viral on social media in which a news anchor from the YouTube channel 'Capital TV' claimed that India is set to discontinue the circulation of ₹ 500 banknotes effective March 2026. 'A #YouTube video on the YT Channel 'CAPITAL TV' (capitaltvind) falsely claims that the RBI will discontinue the circulation of ₹ 500 notes by March 2026,' according to the PIBFactCheck announcement post on platform X. Calling out this social media claim, the Indian government issued an official 'Fact Check' in which they said that the nation's central bank, the Reserve Bank of India (RBI), has made no such announcements about any potential or upcoming demonetisation move. The government also assured the people of the nation that the ₹ 500 banknotes 'have not been discontinued' and continue to serve as a 'legal tender' form of the official Indian currency. The government also warned people to stay alert to 'fake news' and videos circulated on social media platforms and not to believe anything unless it comes from official sources like the RBI. 'Don't fall for such misinformation. Always verify news from official sources before believing or sharing it!' said the Indian government, warning people against similar misinformation circulating on social media platforms. In May 2025, the Reserve Bank of India (RBI) announced that it would soon release new ₹ 20 banknotes with Governor Sanjay Malhotra's signature on them. 'The Reserve Bank of India will shortly issue ₹ 20 denomination Banknotes in Mahatma Gandhi (New) Series bearing the signature of Shri Sanjay Malhotra, Governor. The design of these notes is similar in all respects to ₹ 20 banknotes in Mahatma Gandhi (New) Series,' said the RBI. RBI also disclosed that the ₹ 20 notes will be similar in all other aspects, including design, to the new series of notes circulating in the nation, except for the new governor's signature. The central bank also assured the people of the nation that all the banknotes which contain the denomination of ₹ 20 issued by the RBI in the past will continue to hold legal tender in India, according to the official release.
Hindustan Times
an hour ago
- Hindustan Times
Convicted child killer mom kicked out of Arizona court room by judge: 'Take her out'
A 51-year-old woman, Lori Vallow Daybell, who is already serving time for multiple murder convictions, was removed from an Arizona courtroom on Friday after a heated exchange with the judge during her ongoing attempted murder trial, reported the New York Post. The woman, known as the 'Doomsday mom,' is representing herself in the case and is accused of conspiring to kill her niece's ex-husband, Brandon Boudreaux. The incident reportedly took place on Oct. 2, 2019, when Boudreaux said he was shot at while driving home in Gilbert, Arizona. Prosecutors allege Vallow Daybell and her brother, Alex Cox, plotted the attack, with Cox firing the shot that narrowly missed Boudreaux's head. Tensions escalated in the courtroom when Vallow Daybell attempted to argue for an additional hearing to present character evidence in her defence. 'Do we get a hearing on what 404b (character evidence) can come in,' Vallow Daybell asked, as reported by East Idaho News. 'If I opened the door, do I get a hearing do we stop the trial and I get a hearing?' Judge Justin Beresky responded sharply, stating a short hearing could be held but warned that such evidence would allow prosecutors to bring up her past murder convictions. 'If you are going to introduce how you have great character and good character we will have a short hearing on what evidence they can bring in to rebut that character which could include that you have been convicted of four murders,' Beresky said. Also read: Failed Indian startup founder desperately looks for job, says 'no one is calling back' During the back-and-forth, Vallow Daybell accused the judge of raising his voice. 'You do not need to talk to me like that, I'm being very courteous to you,' she said. Judge Beresky then ordered court security to remove her. 'Take her out, take her out,' he said. 'You have been nothing near courteous to me during the course of these proceedings.' The courtroom went into a 15-minute recess as Vallow Daybell was escorted out. Beresky warned that her right to represent herself could be revoked if her behavior continued. 'Ms. Daybell, if you continue to ask lines of questions where I've sustained an objection, into areas where I've sustained an objection, if you continue to speak over me or the prosecutor … I may be forced to revoke your pro se status,' he said, as reported by Vallow Daybell had previously chosen to invoke her pro se status before the trial began. The proceedings started with jury selection on May 30. On the second day, proceedings were paused when she claimed to be ill. She later appeared in court in a wheelchair on June 2, crying and stating she felt nauseous. However, Judge Beresky found no medical documentation to support her claims and ordered the trial to continue. During her cross-examination of Boudreaux, Vallow Daybell questioned him about their relationship and her character. Boudreaux testified that they often argued and did not have a good relationship, according to Vallow Daybell was convicted in 2023 of the murders of her two youngest children, Joshua 'JJ' Vallow, 7, and Tylee Ryan, 16. Their remains were found on the property of Chad Daybell, her fifth husband. Both were also found guilty of murdering Chad's former wife, Tammy Daybell, in October 2019. The couple had led a 'doomsday cult' during their time together. Also read: Indian techie claims toxic manager blamed his father's death for project delay: 'That was the final straw'
Time of India
an hour ago
- Time of India
RBI survey: Households optimistic about inflation; Less people expect price hikes
Indian households are beginning to feel that inflation is easing, as fewer people expect prices to rise in the months ahead, the Reserve Bank of India said in its latest survey. The central bank on Friday released the findings of its bi-monthly Inflation Expectations Survey of Households for May 2025, revealing a slight drop in perceived inflation. The median perception of current inflation fell to 7.7% in May, against the 7.8% recorded in March. Expectations for inflation over the next three months remained steady at 8.9%, while the one-year-ahead expectation declined by 20 basis points to 9.5%. The survey, conducted between 2 and 11 May across 19 major cities, gathered 6,079 valid responses. It showed that inflation expectations have softened across a broad range of product categories, including food, housing, household goods, and services. Notably, the proportion of households expecting prices to rise in the future has decreased compared to earlier rounds. Still, expectations of inflation remain high, especially for food, with 82.8% of respondents anticipating a price rise in the next three months. Housing at 78.3 % and non-food items at 75.3 per cent followed closely. On a one-year horizon, 89.2% of respondents said they expected prices to go up. While still high, this figure marked a slight moderation from previous levels, suggesting people are growing more optimistic. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Clearance: Handmade luxury bags now 70% off Handmakers Report Read Now Undo The report also revealed differences across age groups and regions. Retired individuals and those over 60 continued to report higher inflation perceptions than younger participants. Regionally, residents of Jammu, Kolkata, and Mumbai perceived the highest levels of inflation, while those in Bengaluru and Ahmedabad felt the least impact. Overall, the numbers point to a gradual shift in sentiment, with households appearing more confident about the price situation in the short and medium term. The apex bank clarified that the survey reflected individual expectations and consumption patterns which may not necessarily align with the official data or RBI's views. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
