SEBI Takes Action Against Mehul Choksi, Attaches Financial Assets Worth Rs 2.1 Crore

The Securities and Exchange Board of India (SEBI) has taken decisive action against fugitive businessman Mehul Choksi by ordering the attachment of his financial assets worth Rs 2.1 crore. This move is part of recovery proceedings due to violations of insider trading rules associated with Gitanjali Gems. Choksi has been given a notice to settle his dues within 15 days, failing which his assets may be frozen. The total dues include penalties and interest accrued over time. This action highlights the ongoing efforts to hold Choksi accountable, who is also a key figure in the notorious Punjab National Bank scam.

By Narendra Chaudhary Jun 6, 2025, 22:05 IST

SEBI's Major Action Against Fugitive Businessman

In a significant move, the Securities and Exchange Board of India (SEBI) has instructed banks and mutual funds to seize the bank accounts and shareholdings of Mehul Choksi, a fugitive businessman, in order to recover dues amounting to Rs 2.10 crore for breaching insider trading regulations related to Gitanjali Gems.

The total dues of Rs 2.1 crore comprise a penalty of Rs 1.5 crore, interest of Rs 60 lakh (calculated from February 2022 to May 2025 at a rate of 1% per month), and a recovery cost of Rs 1,000.

Notice Issued to Choksi

On May 15, 2025, SEBI issued a notice to Mehul Choksi, demanding payment of the dues within 15 days. The notice warned that failure to comply could lead to the freezing of his assets.

SEBI's letter to the banks stated, “No payment has been made by the defaulter, and there are valid reasons to suspect that the defaulter may dispose of the funds in the bank accounts, which could delay or obstruct the recovery of the amount due.”

Mutual Funds Ordered to Attach Demat Accounts

A similar directive was sent to mutual funds in India, instructing them to attach Choksi's demat accounts and mutual fund holdings.

Additionally, banks were directed to ensure that no withdrawals occur from the defaulter's accounts, if any exist.

Banks are also required to provide details regarding the accounts, including any lockers held by Choksi, along with a bank statement for the most recent year.

Depositories and mutual funds have been asked to promptly supply information about the accounts or folios held by Choksi, including account statements and confirmation of the attachment of these accounts or folios.

Choksi's Involvement in PNB Scam

Mehul Choksi is a prominent fugitive businessman implicated in the Punjab National Bank (PNB) scam.

His nephew, Nirav Modi, is also a wanted individual in connection with the investigation. Together, they are accused of defrauding the bank of over Rs 14,000 crore.