Mehul Choksi-Promoted Bankrupt Gitanjali Gems Goes Under Liquidation

The jewelry retailer was admitted under the corporate insolvency resolution process in October 2018 following an application by ICICI Bank
Mehul Choksi-Promoted Bankrupt Gitanjali Gems Goes Under Liquidation

India’s bankruptcy court ordered the liquidation of fugitive diamantaire Mehul Choksi-promoted firm Gitanjali Gems Ltd.

The Mumbai bench of the National Company Law Tribunal (NCLT) also appointed Santanu Ray as the liquidator of the bankrupt jewelry retailer, according to the tribunal’s order.

The bench, comprising Judicial Member Kuldip Kumar Kareer and Technical Member Anil Raj Chellan, passed the order on 7 February.

Gitanjali Gems, which was admitted under the corporate insolvency resolution process (CIRP) in October 2018, had admitted liabilities of over 12,558 crore Indian rupees ($1.51 billion).

Previously, Gitanjali Gems’ resolution professional Vijay Kumar Garg informed the NCLT that the company’s affairs are subject to probe by multiple law enforcement agencies, including the Central Bureau of Investigation (CBI) and the Enforcement Directorate, due to the alleged fraud perpetrated by the Mumbai-based firm and its officers.

The CBI unearthed a bank fraud of 14,357 crore rupees in January 2018 following a complaint filed by state-run Punjab National Bank. Choksi and Nirav Modi are among the key accused in the case.

Gitanjali Gems was admitted under the CIRP after ICICI Bank Ltd. filed a petition against the company to recover dues of about 608 crore rupees.

Note: $1 = 82.9892 Indian rupees

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