Mumbai— The Securities and Exchange Board of India (SEBI) has ordered the attachment of fugitive businessman Mehul Choksi’s bank accounts, mutual fund holdings, and shares in a bid to recover ₹2.1 crore related to an insider trading penalty.
The action stems from a 2022 ruling in which SEBI found Choksi—former Chairman and Managing Director of Gitanjali Gems—guilty of sharing unpublished price-sensitive information (UPSI) with associate Rakesh Girdharlal Gajera. Acting on that information, Gajera offloaded his 5.75% stake in Gitanjali Gems in December 2017, shortly before the company’s fraudulent dealings came to light.
SEBI imposed a ₹1.5 crore penalty on Choksi in January 2022 and banned him from trading in the securities market for one year. After Choksi failed to pay the fine, SEBI issued a demand notice on May 15, 2025. With no response or payment forthcoming within the 15-day deadline, the regulator initiated recovery proceedings.
The total amount now due—including accrued interest of ₹60 lakh—stands at ₹2.1 crore. In a notice dated June 4, SEBI directed banks, mutual fund houses, and depositories such as NSDL and CDSL to freeze all accounts held by Choksi. While credits may continue, all withdrawals have been barred. The order also includes instructions to seize any lockers registered in his name.
SEBI justified the asset freeze by citing the risk that Choksi could attempt to move or conceal funds, hindering recovery efforts. “There is sufficient reason to believe that the defaulter may dispose of the amounts/proceeds in the bank accounts, which could delay or obstruct recovery,” the notice stated.
Choksi, who is also the maternal uncle of Nirav Modi, is a key accused in the ₹14,000 crore Punjab National Bank (PNB) fraud case. Both men fled India in early 2018 after the scam surfaced.
Choksi has been living in Antigua since 2018 but was arrested in Belgium in April this year, reportedly while seeking medical treatment. His arrest followed an extradition request by Indian authorities. Meanwhile, Nirav Modi remains in custody in the UK, where he was arrested by Scotland Yard in 2019. (Source: IANS)
