Jewellery tycoon Mehul Choksi faces fresh fraud case

By

Isabelle Crossley

Published
May 10, 2022

Jewellery tycoon Mehul Choksi has been issued with a fresh criminal case by the Central Bureau of Investigation for allegedly defrauding the Industrial Finance Corporation of India through his jewellery business Gitanjali Gems.

Mehul Choksi, who is accused of fraud at the Punjab National Bank along with his nephew and fellow jewellery tycoon Nirav Modi, now faces fresh fraud charges after a first information report was filed in Mumbai, ET Bureau reported. The FIR was filed against Mehul Choksi and Gitanjali Gems by IFCI’s assistant general manager. 
 
The FIR was filed under the Indian Penal Code section 420 (cheating), 468 (forgery for purpose of cheating), and 471 (fraudulently or dishonestly using as genuine). According to the accusations, Choksi allegedly took part in a fraud whereby Gitanjali Gems got a loan from IFCI based, among other things, on a valuation of diamonds which were used as part of the collateral. 

However, after the business began defaulting on the loan, IFCI had the diamonds revalued and the fresh valuation saw the amount drop by 90%. This led the institution to believe that they had been intentionally lied to about the initial valuation of the diamonds for the purpose of obtaining the loan. 
  
“This case may be good for coffee table talk, but will not stand in the court,” Choksi’s legal advocate Vijay Aggarwal told Asian News International about the new case. “Government agencies can go up to Antigua to kidnap the man but they have not checked their own house and have found it now.”