Sebi big jolt to mehul choksi: Market regulator SEBI has ordered to attach the bank accounts, shares and mutual funds of the absconding diamond businessman Mehul Choksi to recover the dues of Rs 2.1 crore in a violation of the discriminatory trading rules in the shares of Gitanjali James. The move by the Securities and Exchange Board of India (SEBI) has been taken after a notice sent to Choksi on 15 May, which was also warned to seize bank accounts along with property for non -payment within 15 days.
Choksi did not pay the fine imposed by SEBI in January 2022 in a violation of the discriminatory business rules in the shares of Gitanjali James Limited, after which the notice was issued. Choksi was the chairman and managing director of Geetanjali James as well as part of the promoter group. He is the maternal uncle of another fugitive businessman Nirav Modi.
Both are accused of cheating more than Rs 14,000 crore from public sector Punjab National Bank (PNB). In the beginning of the year 2018, both Choksi and Modi fled from India after the PNB scam surfaced. Choksi was arrested in Belgium in April after extradition request by Indian investigative agencies. At the same time, Modi was arrested by the Scotland Yard Police in March 2019 and is currently in the jail of that country.
In the seizure notice issued on June 4, 2025, SEBI said that the pending arrears of Rs 2.1 crore include an initial fine of Rs 1.5 crore and an interest of Rs 60 lakh. To recover the dues, SEBI asked all banks, deposits- CDSL and NSDL and Mutual Fund companies not to allow any withdrawal from Choksi accounts. However, deposits in these accounts are allowed.
In addition, SEBI has instructed banks to attach all accounts including defaulters’ locker. SEBI, in his order passed in January 2022, imposed a fine of Rs 1.5 crore on Choksi and banned it from the securities market for one year. SEBI had found in his investigation that Choksi gave Rakesh Girdharlal Gajera unpublished value-sensitive information. Gajera sold his entire 5.75 percent stake in Geetanjali James in December 2017 before the case of fraud was exposed. (Language)
Edited by: Nrapendra Gupta
