Mumbai (Maharashtra) [India], June 6 : Financial markets regulator SEBI has asked banks and mutual funds to attach the bank accounts and shares and mutual fund holdings of fugitive Mehul Choksi to recover Rs 2.10 crore dues for violating insider trading rules linked to shares of Gitanjali Gems.
The dues of Rs 2.1 crore include Rs 1.5 crore penalty, Rs 60 lakh as interest (February 2022 to May 2025 at 1 per cent per month) and Rs 1,000 as recovery cost.
On May 15, 2025, SEBI sent Mehul Choksi a notice asking him to pay the dues in 15 days. Failure to do so may result in freezing his assets, SEBI mentioned.
"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 realization of amount due under the Recovery Certificate would in consequence be delayed or obstructed," SEBI wrote in its letter to the banks.
A similar letter has also been written to mutual funds in India, asking them to attach his demat accounts and mutual fund holdings.
SEBI also asked banks to ensure no debit is made from the defaulter's accounts, if any.
Banks have also been asked to furnish details of the accounts, including lockers held by the defaulter and a bank statement for the latest year.
Similarly, depositories and mutual funds have been directed to immediately provide details of accounts/folios held by the defaulter, a copy of account statements, and confirmation of attachment of the said accounts/folios.
Mehul Choksi is a fugitive Indian businessman who is a key accused in the Punjab National Bank (PNB) scam.
His nephew, Nirav Modi, is also wanted by the probe agencies in the scam. The duo are alleged to have defrauded the bank of more than Rs 14,000 crore.
PNB unearthed the scam on January 25, 2018, and submitted a fraud report to the Reserve Bank of India (RBI) on January 29. Subsequently, an arrest warrant was issued against Choksi. He is wanted in India for criminal conspiracy, criminal breach of trust, cheating and dishonesty, including delivery of property, corruption, and money laundering.
Choksi fled the country in January 2018 to Antigua and Barbuda. A court in Belgium had, in April this year, denied Choksi's bail plea. He was arrested in Belgium in April following an official request from Indian authorities.
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