Fugitive diamantaire Mehul Choksi, wanted in the Rs 1,4000-crore Punjab National Bank (PNB) fraud case, has run into fresh legal trouble after a Mumbai court issued a non-bailable warrant against him in a case over violations of the Companies Act involving his company, Gitanjali Gems.
Advocate Sandeep Singh, representing the Registrar of Companies (RoC), which filed the case, told India Today TV that the warrant was issued after Choksi and his wife, Preeti Choksi, repeatedly failed to appear before the court despite several notices. The case is pending before a special court in Mumbai.
The case relates to irregularities in customer deposit schemes floated by Gitanjali Gems, including one called Shagun Labh. The company collected money from customers but failed to return their deposits within the stipulated time, prompting the RoC to initiate legal proceedings under the Companies Act.
According to Singh, the company collected deposits worth several crores of rupees through these schemes. While one account cited collections exceeding Rs 5 crore, another account put the amount at more than Rs 45 crore. The exact amount involved in the case could not be independently established from the information available.
"Their lawyers had reportedly sought additional time, arguing that Mehul Choksi was injured and had sustained injuries while in jail. They also argued that his wife, Preeti Choksi, needed to remain there to take care of him," Advocate Singh told India Today TV, explaining what led to the warrant.
CHOKSI ARRESTED IN BELGIUM IN 2025
The latest warrant adds to the legal proceedings against Choksi, who was arrested in Antwerp in Belgium in April 2025. Before his arrest, he had been living in Antigua and Barbuda.
Choksi left India in 2018 after the PNB fraud came to light. He and his nephew, Nirav Modi, are accused of being involved in the alleged Rs 12,500-crore banking fraud at Punjab National Bank.
While Choksi was arrested in Belgium, Nirav Modi remains lodged in a prison in London, as proceedings linked to his extradition to India continue.
The CBI and the Enforcement Directorate (ED) have also pursued cases against Choksi in connection with the PNB fraud. Warrants and other legal proceedings have been initiated against him in these cases.
The latest non-bailable warrant stems from a separate case filed by the RoC Mumbai under the Companies Act and should be distinguished from the investigations into the PNB banking fraud.
The RoC's complaint concerns alleged violations linked to Gitanjali Gems' customer deposit schemes and the company's failure to return money to depositors within the prescribed period. The court's action followed repeated non-appearances by Choksi and his wife, according to Singh.
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