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Business Standard
19-05-2025
- Business
- Business Standard
Sebi orders Mehul Choksi to pay ₹2.1 crore for insider trading breach
India's market regulator, the Securities and Exchange Board of India (Sebi), has issued a notice to Mehul Choksi, asking him to pay ₹2.1 crore for violating insider trading rules related to Gitanjali Gems Ltd, according to a PTI report. Sebi warned that if the amount is not paid within 15 days, it will initiate proceedings to seize his properties and bank accounts. The notice, dated 15 May, includes a penalty of ₹1.5 crore and interest of ₹60 lakh. Sebi stated that if Choksi fails to comply, the recovery will be made by attaching and selling his movable and immovable assets. His bank accounts may also be frozen, and he could face arrest. This action follows Choksi's failure to pay a fine imposed in January 2022. The PNB scam Choksi, who was chairman, managing director, and promoter of Gitanjali Gems, is also the maternal uncle of Nirav Modi. Both men are accused of defrauding Punjab National Bank (PNB) of over ₹14,000 crore. They fled India after the scam came to light in early 2018. Choksi has been living in Antigua since 2018. Last year, he travelled to Belgium citing medical treatment. He was arrested there last month following an extradition request from Indian authorities. Nirav Modi was arrested by Scotland Yard in March 2019 and remains in custody in the UK. Insider trading case In its January 2022 order, Sebi found that Choksi had passed on confidential company information—classified as Unpublished Price Sensitive Information (UPSI)—to Rakesh Girdharlal Gajera. Gajera subsequently sold his 5.75 per cent stake in Gitanjali Gems in December 2017, just before news about fraudulent Letters of Undertaking (LoUs) became public. These LoUs were fraudulently issued for companies under the Gitanjali Group, including Gitanjali Gems Ltd. 'Noticee No. 1, Choksi, was found to have communicated UPSI to Noticee No. 2 (Gajera) without any underlying legal obligation or legitimate purpose,' Sebi said in its final order. Sebi concluded that both Choksi and Gajera violated the Prohibition of Insider Trading (PIT) regulations. This is not the first time Sebi has taken action against Choksi. In May 2023, the regulator issued a separate notice demanding ₹5.35 crore for alleged fraudulent trading in Gitanjali Gems shares. Another fraud case and non-bailable warrant Separately, earlier this month, a Mumbai court issued a non-bailable warrant against Choksi in a 2022 bank fraud case, where he and others are accused of defrauding a consortium of banks—Canara Bank and Bank of Maharashtra—of ₹55.27 crore. The Central Bureau of Investigation (CBI) registered a case in July 2022 after a complaint from a senior Canara Bank official. The case involves Bezel Jewellery (India) Private Limited, where Choksi and three others served as directors. They allegedly conducted fake transactions and defaulted on repayments, diverting and misusing funds.
Hindustan Times
29-04-2025
- Business
- Hindustan Times
Mehul Choksi files fresh plea, accuses Belgian authorities of violating natural justice
Fugitive diamantaire Mehul Choksi has filed a fresh plea before the Belgian Court of Appeal, seeking relief against India's request for his extradition. He also accused Belgian authorities of violating the principles of natural justice. In his latest plea, submitted by his Belgian legal team and drafted by Advocate Vijay Aggarwal, Choksi claimed that Belgian authorities failed to adhere to prescribed legal procedures at the time of his arrest, news agency ANI reported. He argued that officials not only disregarded the due process but also violated his fundamental rights, breaching the principles of natural justice. Citing irregularities in the arrest procedures, Choksi demanded his immediate release. However, the court adjourned the hearing on his petition against his arrest. The development comes just days after the fugitive diamond merchant's bail plea was rejected by the Belgian Court of Appeal. Choksi is the key accused in the ₹13,500 crore Punjab National Bank (PNB) scam, along with his nephew Nirav Modi. It is alleged that the two used fraudulent Letters of Undertaking (LoUs) to obtain overseas credit or loans from Indian banks. In his second plea before the Belgian court, Choksi claimed that his arrest procedure was arbitrary and unlawful. Earlier in April, Belgian authorities arrested Mehul Choksi on an extradition request made by Indian agencies over the bank fraud. Choksi's lawyer, Vijay Aggarwal, speaking to ANI, expressed disappointment over the court's decision. However, he took note that the Belgian law allows for multiple bail pleas. "Unfortunately, my client has been denied bail today. However, in Belgium, we can apply for bail as many times as needed. We will carefully consider the court's observations and submit a fresh bail plea on new grounds soon", he said. Aggarwal reiterated that the legal team will contest the fugitive diamantaire's extradition mainly on two grounds -- the case's political nature, and his medical condition and treatment in India. Earlier, the lawyer had reportedly said that Choksi cooperated with Indian investigative agencies and has consistently offered to join their probe via video conferencing due to his health issues. Aggarwal also said that the previous attempts to extradite Choksi from Dominica had failed, noting that the Indian fugitive businessman had been under medical care in Antigua before travelling to Belgium for cancer care.
India Today
29-04-2025
- Business
- India Today
Setback for Mehul Choksi, Belgium court adjourns plea challenging arrest
Fugitive businessman Mehul Choksi, who was arrested in connection with PNB bank scam case, received yet another setback on Tuesday as a court in Belgium adjourned the hearing on his plea challenging his Belgian Police took custody of Choksi, the second "prime suspect" in Rs 13,000-crore PNB loan fraud case on April 12 in Antwerp, based on an extradition request moved by the CBI and the Enforcement Directorate (ED).advertisementThis was the second plea by Mehul Choksi who, in his fresh plea, claimed that the process undertaken for his arrest was arbitrary and unlawful. His earlier plea seeking bail was rejected by the court last week. The next date for the hearing is yet to be April 22, a court in Belgium turned down his request for bail. In his first plea, Mehul Choksi told the court that he was unwell and wished to be with his family. He said he was ready to accept any conditions, including wearing a GPS-enabled anklet if India said it is working closely with Belgium for the extradition of Choksi."Based on our extradition request, he was arrested. We are working closely with the Belgium side on his extradition so that he can face trial in the country," External Affairs Ministry spokesperson Randhir Jaiswal is accused of defrauding Punjab National Bank of over Rs 6,095 crore through a massive banking scam involving the fraudulent issuance of Letters of Undertaking (LOUs) and the manipulation of Foreign Letters of Credit (FLCs).Though the broader estimated fraud is pegged at over Rs 13,000 crore, investigative agencies have specifically built a case against Choksi based on the Rs 6,095 crore component linked directly to his operations.
Scroll.in
23-04-2025
- Business
- Scroll.in
PNB scam: Mehul Choksi's bail petition rejected by Belgian court
A Belgian court on Tuesday rejected the bail petition of diamond merchant Mehul Choksi, who was arrested earlier this month in the Punjab National Bank fraud case, ANI reported. Choksi was arrested by the Belgian police in the city of Antwerp on April 12 after India made an extradition request in connection with the alleged fraud case. He is wanted by the Central Bureau of Investigation and the Enforcement Directorate. Choksi's lawyer Vijay Aggarwal said he was disappointed with the court having denied bail, but said that Belgian law allows for multiple bail petitions. 'We will carefully consider the court's observations and submit a fresh bail plea on new grounds soon,' he was quoted as saying by ANI. Aggarwal said that Choksi's legal team will contest his extradition based on two key arguments – the political nature of the case and concerns about his medical condition and access to treatment in India. The lawyer had said earlier this month that Choksi was undergoing cancer treatment. Choksi is one of the prime accused, along with his nephew Nirav Modi, in the PNB fraud case. The fraud came to light in February 2018 when the bank informed the stock exchange BSE that it had detected 'fraudulent and unauthorised transactions' worth Rs 11,380 crore at a branch in South Mumbai. A few officials of the public sector bank had allegedly issued fraudulent Letters of Undertaking to Modi's companies, resulting in the loss of Rs 6,097.6 crore to PNB. Choksi had also defaulted on another loan he had taken from ICICI Bank. He had fled India for Antigua and Barbuda in January 2018, a few weeks before the fraud came to light and secured the citizenship of the Caribbean country. Choksi has been living in Belgium after obtaining a residency card.
Indian Express
22-04-2025
- Indian Express
Mehul Choksi denied bail in Belgium
A court in Belgium on Tuesday rejected the bail application of fugitive jeweller Mehul Choksi. He was arrested by the Belgium authorities on April 12 after an extradition request was made by India, in connection with the Rs 13,000-crore Punjab National Bank (PNB) loan fraud case. Choksi, who is in detention in Antwerp, had filed a plea seeking liberty or to be released on bail pending extradition proceedings. His lawyer Rahul Agarwal confirmed to The Indian Express that Choksi's plea for bail was rejected by a court in Belgium. He said that further decision on the next legal steps will be taken when the detailed order copy will be made available to them. Choksi's detention is in anticipation of further judicial proceedings against him, a spokesperson of the Belgian Ministry of Justice had said. Choksi had sought to be released till the proceedings are heard and a request that he may be permitted to defend himself in the extradition proceedings while not in custody. He had sought to fulfil necessary conditions for his release. The plea was mainly on the ground that Choksi was suffering from cancer and was in need of medical care. Choksi had escaped India in 2018. Officials of the CBI are in Belgium to carry out the legal procedures. Cases were filed against Choksi by both the CBI and the Enforcement Directorate, following allegations that he and his nephew Nirav Modi–also facing extradition proceedings in the UK at India's request–had in separate offences cheated PNB by getting fraudulent Letters of Undertaking issued and got enhanced Foreign Letters of Credit without following bank procedure. Despite summons and warrants, Choksi had not remained present for the proceedings against him, giving various reasons including his health for not appearing before Indian authorities. He had taken citizenship of Antigua and Barbuda in 2017 and was residing there since. A plea to declare him a fugitive economic offender under the Act of the same name is pending before a special court in Mumbai, which will permit authorities to confiscate his properties even before the trial if he does not remain present before court. His lawyers had recently told the court in Mumbai that he had travelled to Belgium to undergo health treatment after being diagnosed with cancer and other medical complications.
