The Securities and Exchange Board of India (SEBI) has ordered the attachment of absconding businessman Mehul Choksi’s bank accounts, mutual funds, and shares in an effort to recover Rs 2.1 crore. The amount is related to a penalty imposed on him for violating insider trading rules in the shares of Gitanjali Gems. Choksi, who was the Chairman and Managing Director of Gitanjali Gems, is accused of sharing unpublished price-sensitive information (UPSI) with an associate, Rakesh Girdharlal Gajera.
Based on that information, Gajera sold off his entire 5.75 per cent stake in the company in December 2017, allegedly to avoid losses before details of fraudulent activities involving the company became public.
In January 2022, the SEBI fined Choksi Rs 1.5 crore and banned him from trading in the securities market for one year.
However, Choksi did not pay the fine, prompting the SEBI to issue a demand notice on May 15, 2025. When he failed to respond or make the payment within the 15-day deadline, the market regulator proceeded with the attachment of his assets.
The total dues now stand at Rs 2.1 crore, including Rs 60 lakh in interest. In its notice dated June 4, the SEBI directed all banks, depositories like CDSL and NSDL, and mutual fund houses to freeze Choksi’s accounts.
While no money can be withdrawn, credits are still allowed. The market regulator has also instructed banks to seize any lockers in his name.
The market regulator explained that the action was necessary because there is a strong possibility that Choksi may try to move or hide his assets, which could delay or prevent the recovery process.
“Whereas no amount has been paid by the defaulter and there is sufficient reason to believe that the defaulter may dispose of the amounts/proceeds in the bank accounts held with your bank and realisation of the amount due under the recovery certificate would in consequence be delayed or obstructed,” the market regulator stated.
Choksi, who is also the maternal uncle of Nirav Modi, has been facing legal action in connection with the Punjab National Bank (PNB) fraud case involving over Rs 14,000 crore.
Both Choksi and Modi fled India in early 2018 when the scam came to light. Choksi had been living in Antigua since 2018 but was arrested in Belgium in April this year after Indian authorities requested his extradition.
He was reportedly in Belgium for medical treatment. Meanwhile, Nirav Modi remains in a UK jail after being arrested by the Scotland Yard in 2019.
