The Central Bureau of Investigation (CBI) has registered a new case against Mehul Choksi and his company Gitanjali Gems for allegedly defrauding IFCI of Rs 22 crore during the period 2014-18.
An FIR lodged on April 28 has said that Gitanjali Gems, its director Choksi and other accused persons were involved in a criminal conspiracy to cheat IFCI (Industrial Finance Corporation of India).
“A written complaint was received from Yamini Das, Asst. General Manager (Law), IFCI (Industrial Finance Corporation of India) Ltd, Mumbai alleging therein that Gitanjali Gems Ltd (GGL), Mehul Choksi and other accused persons…, during the period 2014 to 2018 were party to a criminal conspiracy to cheat IFCI,” the FIR said.
In pursuance to the aforesaid criminal conspiracy, Gitanjali Gems through its director Choksi approached IFCI seeking financial assistance for meeting its long-term working capital requirement, and induced IFCI to sanction corporate loan of Rs 25 crore in March 2016. “This loan was sanctioned and disbursed in favor of Gitanjali Gems,” it further said.
It is alleged in the complaint that IFCI relying on the representation, assurances and undertakings of Gitanjali Gems as well as Choksi and the value of the pledged jewels on the basis of valuation conducted by Surajmal Lallu Bhai & Co., Narendra Jhaveri, Pradip C Shah and Shrenik R Shah had disbursed the entire loan amount of Rs 25 crore on the basis of security cover of 2 times based on the pledge of shares and the pledge of the gold, diamond and gold CS studded jewellery, the FIR said.
In the complaint, it is further alleged that Gitanjali Gems had started committing defaults in the repayment of loan installments and in order to recover the defaulted amount, IFCI invoked the pledge and out of total pledged 20,60,054 shares, IFCI could only sell 6,48,822 shares amounting to Rs 4,07,07,881 as the client ID of Choksi was suspended by NSDL.
Further, IFCI in order to realize the security had appointed two valuers viz. Markandeyaa (Mineral Consultants & Traders) and Aarch Consultants & Valuers which conducted fresh valuation on 29 June 2018 and 1 August 2018, respectively of the pledged jewels (gold, diamonds and gold CS studded jewellery), it said. The fresh valuation obtained by IFCI dropped the valuation of the pledged jewels by 98 percent.
Thus, it is prima facie revealed that Choksi with dishonest and fraudulent intention colluded with the valuers and got the valuation of the pledged jewels done with exorbitant and inflated value, the FIR said.
“Further it also came to the light that the diamonds are of low quality lab prepared chemical vapor diamonds and other inferior colour stones and not real gemstones. The account of Gitanjali Gems was classified as NPA w.e.f. 30 June 2018, thereby causing wrongful loss of Rs 22,06,20,106 to IFCI and corresponding wrongful gain to the accused,” it said.
Choksi, the fugitive diamantaire, is currently living in Antigua and Barbuda and the Indian government is pursuing his extradition.
In May last year, he had gone missing but was soon caught in Dominica. Choksi was charged with illegal entry by the Dominican police after allegedly escaping from Antigua and Barbuda in a possible attempt to evade extradition to India. Later, he was granted interim bail on medical grounds.
