Securities and Exchange Board of India (SEBI) has sent a notice to fugitive businessman Mehul Choksi asking him to pay ₹5.35 crore in a case pertaining to fraudulent trading in the shares of Gitanjali Gems Ltd and warned of attachment of assets as well as bank accounts if he fails to make the payment within 15 days.
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Regulator sent him the the demand notice after Mr. Choksi failed to pay a fine imposed on him by SEBI. Choksi, was the chairman and managing director as well as part of promoter group of Gitanjali Gems. Choksi and Nirav Modi both are facing charges of defrauding state-owned Punjab National Bank (PNB) of more than ₹14,000 crore.
Both fled India after the PNB scam came to light in early 2018. While Choksi is said to be in Antigua and Barbuda, Nirav Modi is lodged in a British jail.
In a fresh notice, SEBI directed Choksi to pay ₹5.35 crore, which includes interest and recovery cost, within 15 days. In the event of non-payment of dues, SEBI will recover the amount by attaching and selling his moveable and immoveable property in auction. Besides, Choksi faces attachment of his bank accounts and arrest.
Before fleeing from India in 2018, Choksi had acquired the citizenship of the Caribbean island nation of Antigua and Barbuda in 2017. Choksi is accused of cheating of more than Rs 1400 crore in connivance with some officials of Punjab National Bank.
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