In October 2022, Sebi had passed an order after its investigations found that Choksi, between July 2011 and January 2012, had manipulated the stock price of Gitanjali Gems. It was found that 20 entities related to Choksi were used to manipulate the stock price. Subsequently, Choksi was fined Rs 5 crore. Since he failed to pay the penalty amount, Sebi has now moved to recover the Rs 5crore penalty and an additional Rs 35 lakh as the interest on the penalty from Choksi’s bank and demat accounts. The Sebi order was passed on Wednesday.
Choksi was the chairmancummanaging director of Gitanjali Gems and was also part of the promoter group of the company. He is the maternal uncle of Nirav Modi, also a fugitive businessman who is estimated to have defrauded Punjab National Bank by about Rs 14,000 crore. Both Choksi and Modi had fled India after the PNB scam was exposed in 2018 and are currently among the most wanted people for the country’s investigating agencies.
Choksi is currently based in Antigua and Barbuda in the West Indies. According to Sebi, he is currently based at Harbour Island, Jolly Harbour, St Mary’s South in the island nation. Through the recovery notice, Sebi has asked all the banks, the two depositories CDSL and NSDL, and all mutual fund houses not to allow any debit from Choksi’s accounts. The regulator has also directed all the banks to attach all of Choksi’s accounts, including lockers. It has also asked for all the loans and advances’ accounts of the fugitive businessman.
Sebi’s investigations showed that Choksi had used some of Gitanjali Gems promoter companies and his other associated companies to indulge in circular trading to jack up the stock price. Several employees of the company and related entities were also involved in the operation.
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