Choksi's Gitanjali Gems to be Liquidated
February 18, 24
(IDEX Online) - Gitanjali Gems, the jewelry brand founded by Mehul Choksi that once had 4,000 points of sale across India, is to be liquidated.
The National Company Law Tribunal (NCLT) has approved the move, which follows an insolvency order in October 2018, when the business had admitted liabilities of over Rs 12,558 crore ($1.51bn)
Choksi was managing director of Gitanjali until the Punjab National Bank (PNB) scandal broke. He and his nephew Nirav Modi are suspected of an alleged $1.8 bn fraud against India's second-largest state lender.
Choksi now lives on the Caribbean island of Dominica, after disappearing in May 2021 from his new home in Antigua, where he had taken up citizenship.
He is fighting moves to extradite him to India to stand trial. Nirav Modi lost his last-ditch battle against extradition to India, but remains in a UK prison amid ongoing legal proceedings.
Gitanjali once boasted more than a 50 per cent share of India's overall organized jewelry market.
Vijay Kumar Garg, resolution professional for the company told the NCLT Gitanjali's affairs were currently being investigated by the Enforcement Directorate (ED) and the Central Bureau of Investigation (CBI).
Screengrab of Mehul Choksi courtesy NDTV.