The Securities and Alternate Board of India (SEBI) has ordered the freezing of all financial institution accounts, lockers, and monetary property held by fugitive diamantaire Mehul Choksi throughout Indian banks to recuperate Rs 2.1 crore in pending dues linked to insider buying and selling violations within the Gitanjali Gems case.
Rs 2.1 crore penalty contains curiosity and restoration value
As per SEBI’s restoration discover, Choksi owes a complete of Rs 2.1 crore, damaged down as:
Penalty: Rs 1.5 crore, imposed on January 31, 2022, by a SEBI Complete-Time Member
Curiosity: Rs 60 lakh accrued at 1 per cent per 30 days from February 2022 to Might 2025
Restoration value: Rs 1,000
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The penalty stems from violations underneath securities legislation within the case of Gitanjali Gems Ltd, the now-defunct firm as soon as helmed by Choksi, who can be a key accused within the Rs 13,000 crore Punjab Nationwide Financial institution fraud.
Choksi ignored restoration discover dated Might 15, says SEBI
Regardless of repeated reminders, together with a last demand discover issued on Might 15, 2025, Choksi made no effort to pay the penalty, forcing SEBI to provoke restoration underneath Part 28A of the SEBI Act. The regulator flagged the “imminent danger” of Choksi liquidating or transferring funds and directed all scheduled industrial banks to right away connect:
All financial institution accounts and lockers, whether or not held individually or collectively
Any current or future receivables, curiosity, or deposits resulting from him in Indian banks
Banks directed to report and limit entry to funds
Banks have been instructed to report any account or locker belonging to Choksi and block all transactions till additional discover. SEBI’s sweeping order applies to all proceeds traceable to the defaulter and can stay in power until the entire restoration of dues.
A part of bigger crackdown on absconders like Choksi, Mallya, Modi
Mehul Choksi fled India in early 2018 and is presently residing in Antigua and Barbuda, regardless of a number of makes an attempt by Indian businesses to safe his extradition. Whereas felony proceedings over the PNB rip-off proceed, this specific case pertains to regulatory violations underneath securities legislation, not felony fraud.
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The SEBI motion comes on the heels of renewed scrutiny of high-profile financial offenders. It additionally follows elevated coordination between regulatory and enforcement businesses to fast-track asset restoration from fugitives.
With this attachment, Choksi’s entry to Indian banking infrastructure is successfully reduce off. Except he chooses to enchantment and clear dues, SEBI is predicted to escalate enforcement additional. In the meantime, Indian businesses await extradition breakthroughs, with courts overseas but to rule conclusively on Choksi’s return.
