SEBI Orders Mehul Choksi’s Asset Attachment to Recover ₹2 Cr Dues
Mehul Choksi, the fugitive businessman, is facing yet another setback as the Securities and Exchange Board of India (SEBI) has ordered the attachment of his bank accounts, mutual funds, and shares to recover over ₹2 crore dues. This move comes after Choksi received a demand notice on May 15, warning of asset seizure if he failed to pay the dues within 15 days.
The penalty stems from Choksi’s violations of insider trading norms with Gitanjali Gems in 2017. As the co-promoter of the company, Choksi was accused of indulging in illegal activities, including insider trading, with the intention of making illegal gains. The Securities and Exchange Board of India (SEBI) had imposed a fine of ₹2 crore on Choksi and his brother, Nirav Modi, in 2018.
Choksi’s troubles started in 2017 when he and his brother Nirav Modi were accused of perpetrating a massive financial fraud involving the Punjab National Bank (PNB) and other banks. The scam, which came to be known as the PNB scam, was estimated to be worth over ₹13,000 crore.
The SEBI order to attach Choksi’s assets is a significant development in the ongoing probe into the PNB scam. Choksi, who is currently in Antigua and Barbuda, has been evading Indian authorities for several years. He was declared a fugitive by the Indian government in 2018 and has been facing trial in India for his alleged role in the scam.
The SEBI order to attach Choksi’s assets is a result of a thorough investigation into the illegal activities of Choksi and his brother. The investigation found that Choksi had violated several securities laws, including insider trading norms, by making illegal gains from the sale of Gitanjali Gems shares.
The SEBI order also highlights the lack of compliance by Choksi with the securities laws. Choksi had failed to disclose the sale of Gitanjali Gems shares, which is a violation of the securities laws. The SEBI order also finds that Choksi had made false statements to the stock exchange and had concealed material information from the public.
The attachment of Choksi’s assets is a significant blow to the fugitive businessman. It is a clear indication that the Indian authorities are determined to recover the dues from Choksi and his brother Nirav Modi. The SEBI order is also a warning to other corporate entities and individuals who may be tempted to violate securities laws.
The SEBI order is also a testament to the effectiveness of India’s securities laws. The SEBI has been taking a tough stance on corporate malfeasance and has been imposing heavy penalties on entities and individuals who violate securities laws.
In conclusion, the SEBI order to attach Mehul Choksi’s assets is a significant development in the ongoing probe into the PNB scam. The attachment of assets is a clear indication that the Indian authorities are determined to recover the dues from Choksi and his brother Nirav Modi. The SEBI order is also a warning to other corporate entities and individuals who may be tempted to violate securities laws.
Source: https://x.com/airnewsalerts/status/1930952854015025457
