Mumbai, Sept 5: Stock market regulator Securities and Exchange Board of India (SEBI) has ordered the attachment of bank and demat accounts of fugitive businessman Mehul Choksi, Gitanjali Gems and its Executive Director Dhanesh Sheth to recover dues worth over Rs 5 crore.
SEBI said the decision to attach the accounts including lockers were taken after Choksi, Gitanjali Gems and Sheth failed to pay a fine of Rs 5 crore imposed on them in February.
The fine was imposed for violating various norms, including listing regulations. The pending dues totalling over Rs 5.27 crore include the initial fine of Rs 5 crore, an interest of over Rs 27 lakh and a recovery cost of Rs 1,000.
"There is sufficient reason to believe that the defaulters may dispose of the amounts/proceeds in bank accounts and realisation of the amount due under the certificate will, in consequence, be delayed or obstructed," said SEBI in its recovery proceedings order issued late on Friday.
It asked banks and depositories not to allow any debit from the accounts of Choksi, Gitanjali Gems and Sheth till further orders. However, credits have been permitted.
Choksi, the uncle of diamantaire Nirav Modi, is the Promoter and Managing Director of Gitanjali Gems.
Modi has been lodged in a London prison since his arrest in March 2019 and is currently battling extradition to India. He allegedly defrauded government-owned Punjab National Bank of more than Rs 14,000 crore.
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