Latest news with #LoUs
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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case In its January 2022 order, Sebi found that Choksi had passed on confidential company information—classified as Unpublished Price Sensitive Information (UPSI)—to Rakesh Girdharlal Gajera.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.
Time of India
19-05-2025
- Business
- Time of India
Sebi issues Rs 2.1 cr demand notice to absconding diamantaire Mehul Choksi
Markets regulator Sebi has sent a notice to absconding diamantaire Mehul Choksi asking him to pay Rs 2.1 crore in a case of violation of insider trading rules in the shares of Gitanjali Gems Ltd and warned of attachment of assets as well as bank accounts if he fails 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. 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 Rs 14,000 crore. Choksi and Modi fled India after the PNB scam came to light in early 2018. Last month, Choksi was arrested in Belgium following an extradition request by Indian probe agencies. He was located in Belgium last year when he went there on the grounds of getting medical treatment. He had been staying in Antigua since 2018 after leaving India. Continue to video 5 5 Next Stay Playback speed 1x Normal Back 0.25x 0.5x 1x Normal 1.5x 2x 5 5 / Skip Ads by by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Kuching: Unsold Furniture Liquidation 2024 (Prices May Surprise You) Unsold Furniture | Search Ads Learn More Undo Modi was arrested by the Scotland Yard Police in March 2019 and is currently lodged in jail in that country. In a fresh recovery notice dated May 15, the Securities and Exchanges Board of India (Sebi) directed Choksi to pay Rs 2.1 crore within 15 days. This included a penalty of Rs 1.5 crore and an interest of Rs 60 lakh. In the event of non-payment of dues, the market regulator said it will recover the amount by attaching and selling his moveable and immovable properties. Besides, Choksi faces attachment of his bank accounts and arrest. Live Events In its order passed in January 2022, the regulator imposed a penalty of Rs 1.5 crore on Choksi and restrained him from the securities market for one year. Sebi had found that Choksi communicated UPSI 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 its 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 PIT (Prohibition of Insider Trading) rules. In May 2023, Sebi had sent a notice to Choksi directing him to pay Rs 5.35 crore in a case pertaining to fraudulent trading in the shares of Gitanjali Gems.
Hindustan Times
15-05-2025
- Politics
- Hindustan Times
UK court rejects Nirav Modi's fresh bail application
A UK court on Thursday rejected a bail petition filed by Nirav Modi, who has been in prison in London for nearly six years after losing his extradition battle to face fraud and money laundering charges in India. The Central Bureau of Investigation (CBI) said that the fresh bail petition filed by Nirav Modi was rejected today by the High Court of Justice, King's Bench Division, London. 'The bail arguments were strongly opposed by the Crown Prosecution Service advocate who was ably assisted by a strong CBI team consisting of investigating and law officers who travelled to London for this purpose,' the CBI said, according to ANI. Nirav Modi is the prime accused in the ₹13,850 crore fraud at Punjab National Bank was declared a fugitive economic offender in December 2019. Modi and his uncle, Mehul Choksi, are accused of defrauding PNB by obtaining fraudulent LoUs, enabling them to secure overseas loans without proper collateral. He was arrested on an extradition warrant on March 19, 2019, and then UK home secretary Priti Patel ordered his extradition in April 2021. Nirav has since exhausted his legal appeals in the case up to the Supreme Court and made several bail applications, the most recent being in May last year, which have all been turned down over his 'real and substantial' flight risk. There are three sets of criminal proceedings against Nirav Modi in India – the Central Bureau of Investigation (CBI) case of fraud on the Punjab National Bank (PNB), the Enforcement Directorate (ED) case relating to the alleged laundering of the proceeds of that fraud and a third set of criminal proceedings involving alleged interference with evidence and witnesses in the CBI proceedings.
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.
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Business Standard
27-04-2025
- Business Standard
Punjab National Bank's scam-hit branch in Mumbai now brews organic coffee
The Brady House branch of the Punjab National Bank (PNB) in Mumbai, infamous for a multi-million dollar scam involving diamantaire Nirav Modi and his uncle Mehul Choksi, has been turned into a cosy cafe. Patrons sit on comfy chairs and plush sofas, sipping steaming cups of organic coffee with light music playing in the background on the premises, a stark contrast to the chaos that erupted after the duo defrauded the bank of more than Rs 13,000 crore. The premises in the Brady House building in the Fort area of south Mumbai were once at the centre of one of the biggest financial scams to rock the country. Nirav Modi and his uncle Mehul Choksi allegedly siphoned off over Rs 13,000 crore of public money from the PNB using LoUs and foreign letters of credit (FLCs) by bribing officials of the bank's Brady House branch between March 2011 and November 2017. With Choksi's arrest in Belgium two weeks ago, the Brady House is again in the spotlight, but the operations of this branch were shifted to PNB House at Sir P M Road in Fort a few years ago. The scam came to light in January 2018 when the PNB submitted a fraud report to the Reserve Bank of India and lodged a complaint with the Central Bureau of Investigation (CBI). Choksi and Modi had fled the country before that, and the CBI and the Enforcement Directorate (ED) have probed into the scam. In March 2019, Modi was arrested in London on an extradition warrant based on the CBI and ED's charges against him and has been languishing in prison since. The Belgian Federal Police Service arrested Choksi on April 12 based on the extradition request by the Indian agencies. However, although various developments related to the PNB scam have been underway, the happenings have not had any bearing on Brady House, which has been transformed into a posh cafe. The bank shifted the Brady House branch's operations to PNB House and vacated the place, which was rented out. The place has now become a popular haunt for business meetings and chats over coffee.
