On July 4, shares of Mehul Choksi’s jewellery brand Gitanjali Gems dropped by over three percent following the ED’s application to a special Mumbai court to label Choksi a “fugitive economic offender”.
The ED is set to ask a special court in Mumbai to brand jewellery tycoon Mehul Choksi a "fugitive economic offender" and confiscate over Rs 6,000 crore ($900 million) in assets as part of the PNB fraud case.
On June 29, the Enforcement Directorate (ED) announced that it has filed a prosecution complaint against the owner and promoter of Gitanjali Gems, Mehul Choksi, as part of the Punjab National Bank (PNB) fraud case.
U.S. jewelry chain Samuels Jewelers has hired a turnaround adviser at the request of its creditors in a bid to avoid the fate of brick-and-mortar retailers that filed for bankruptcy amid intensifying competition.
The Odisha government has cancelled permissions to Gitanjali Group subsidiary Gitanjali Infratech Ltd for its Rs 636 crore (approx $99 million) jewellery park post its involvement in multi-crore PNB scam.
A recent Assocham survey has reported that the demand for diamond jewellery in India has decreased by between ten and 15 percent as a result of the fraud involving jewellers Nirav Modi and Mehul Choksi.
The accounts of Gitanjali Gems and Mehul Choksi’s group of companies, which are currently embroiled in the biggest fraud scandal in India’s banking history, have forced up Non-performing Assets (NPAs) this past quarter.
Karnataka Bank Ltd informed the RBI that, although not exposed to any letters of undertaking (LoU), it was defrauded to the tune of 86.5 crore rupees (approximately 13 million US dollars) by Gitanjali Gems.