Choksi Choked? National Company Law Tribunal Admits Case Against Gitanjali Gems 

The National Company Law Tribunal (NCLT) has admitted an insolvency petition against fraud hit Gitanjali Gems, Livemint has reported. The petition was filed by ICICI Bank at the Mumbai bench of NCLT for defaulting on dues worth Rs 608 crores.

“These dues were in the form of working capital loans and external commercial borrowings (ECBs),” counsel for ICICI Bank Sagar Divekar told Livemint. Gitanjali Gems owes Rs 5,980 to a consortium of banks led by ICICI Bank. ICICI has received the verbal consent of the consortium to go after the company.

“The tribunal is of the view that the company is fit and proper to be referred to Corporate Insolvency Resolution Process (CIRP) and the investigation agencies including that of Serious Fraud Investigation Office, Enforcement Directorate and others can work with the RP with regards to recovery of assets of the company,” NCLT presiding officer M. K. Shrawat said while admitting the petition.

A Special Prevention of Money Laundering Act (PMLA) court has asked Gitanjali Gems promoter Mehul Choksi to respond to a plea filed by the Enforcement Directorate to declare him an economic offender by 30 October. Nirav Modi is also one of the accused in the $2 billion Punjab National Bank fraud along with Mehul Choksi.