The Central Bureau of Investigation has filed a new case against fugitive diamantaire Mehul Choksi and his company Gitanjali Gems for cheating the Industrial Finance Corporation of India of approximately Rs. 22 crores.
Three government approved valuers have also been named as accused of their failure to perform “their duty as government-approved valuer”.
Searches were carried out at eight locations in Mumbai and Kolkata including the residence and office of valuers. CBI suspects they worked in “conspiracy” with Choksi and inflated the value of jewellery which was pledged for the loan. The loan was taken between 2014-18.
Choksi and Gitanjali Gems had approached IFCI for a term loan. “Further it came to light that diamonds are of low quality lab prepared chemical vapour diamonds and other inferior colour stones and not real gemstones,” said the CBI in its FIR.
The probe agency also noted that there was, “clear cut collusion between borrower and valuers to show inflated valuations to prop up the value of security offered to IFCI.”
“It was further alleged that the accused had started committing defaults in the repayment of loan installments and in order to recover the defaulted amount of the instalments, IFCI Ltd. invoked the pledge and the fresh valuation obtained by IFCI dropped the valuation of the pledged jewels by 90 percent. It was also alleged that the said director colluded with the valuers and got the valuation of the pledged jewels done with exorbitant and inflated value. The diamonds were allegedly of low quality and not real gemstones,” said the CBI.
Last year Choksi was found in Dominica in mysterious circumstances. India pressed for his deportation. However, his legal team said he was “abducted”.
First, a police complaint was filed when Choksi went missing from a resort in Antigua and Barbuda. Later an “injured” and “dehydrated” Choksi was found in a yacht near the Dominican coast. After a short trial in Dominica, he was given bail and is now back in Antigua.
Along with his nephew Nirav Modi, Mehul Choksi fled India after defrauding Punjab National Bank of Rs 13,000 crores. After a short stay in the US, Choksi and his wife managed to reach Antigua and acquired their citizenship. In 2018 at CBI’s request, Interpol issued a Red Corner Notice against both. Since March 2019, Nirav Modi is lodged in London prison. His extradition trial is in the last phase.
