Mehul Choksi faces 10 year capital market ban, Rs 5 crore fine

By

Isabelle Crossley

Published
Nov 1, 2022

Mehul Choksi has been issued with a 10-year ban from the securities markets and a Rs 5 crore fine for fraudulent trading though his jewellery business Gitanjali Gems. The jewellery tycoon accused of large-scale fraud was issued the order by the Securities and Exchange Board of India (Sebi). 

Choksi was barred from the securities markets on October 31, ET Bureau reported. The fugitive businessman, who is currently believed to be residing in Antigua, has been ordered to pay the Rs 5 crore fine within 45days of the order. 
 
“I find that the above mentioned findings coupled with the noticee’s (Mehul C Choksi) failure to rebut the said findings, clearly establishes the noticee’s role in creation of false and in misleading appearance of trading in the scrip of GGL by using and funding the front entities in executing manipulated trades,” wrote Sebi member Ashwani Bhatia in the 20-page order on the matter, the Press Trust of India reported. “I thus find that the noticee has violated the provisions of… Prohibition of Fraudulent and Unfair Trade Practices Regulations.”

Choksi was both the chairman and managing director at Gitanjali Gems. The diamantaire, along with his nephew and fellow jewellery brand head Nirav Modi, have been accused of fraud at the Punjab National Bank and other financial institutions totalling over Rs 14,000 crore, making it one of the largest scale alleged frauds in Indian banking history. Choksi has maintained that he is innocent and had left the country shortly before news of the fraud case broke in the media.