Mumbai, June 6 (IANS). The Securities and Exchange Board of India (SEBI) has ordered to attach the bank accounts, mutual funds and shares of absconding businessman Mehul Choksi to recover Rs 2.1 crore.
This amount is related to the fine imposed on them for violating the insider trading rules in the shares of Geetanjali James.
Choksi, president and managing director of Geetanjali James, is accused of sharing unpublished price-sensitive information (UPSI) with his colleague Rakesh Girdharlal Gajera.
Based on this information, Gajera sold his entire 5.75 percent stake in the company in December 2017. Gajera took this step to avoid damage before the company became public before it became public.
For this, in January 2022, SEBI imposed a fine of Rs 1.5 crore on Choksi and banned trading for a full year.
However, Choksi did not pay the fine. For this reason, SEBI had to issue a demand notice on May 15, 2025, but has been ordered to attach their properties due to lack of response within 15 days.
The total outstanding amount on Choksi is now Rs 2.1 crore, which includes interest of Rs 60 lakh. In its notice issued on June 4, SEBI has directed deposits and mutual fund houses like all banks, CDSL and NSDL to freeze Choksi accounts.
Money cannot be withdrawn from Choksi accounts following SEBI’s instructions. However, credits are still allowed. The market regulator has also instructed banks to seize all lockers in its name.
The market regulator stated that this action was necessary because there is a strong possibility that Choksi could try to carry or hide his property elsewhere, which may delay or stop the recovery process.
Nirav Modi’s maternal uncle Choksi is facing legal action in connection with the Punjab National Bank (PNB) fraud case worth over Rs 14,000 crore.
After the scam surfaced, both Choksi and Modi fled abroad from India in early 2018. Choksi was living in Antigua since 2018, but was arrested in Belgium after Indian authorities requested his extradition in April this year.
He was allegedly in Belgium for treatment. Meanwhile, Nirav Modi is in a UK jail after being arrested by the Scotland Yard in 2019.
-IANS
ABS/
