The Securities and Exchange Board of India (SEBI) has issued a stringent asset seizure order against fugitive diamond trader Mehul Choksi. This decisive action stems from Choksi's failure to pay imposed penalties.
SEBI has stated that due to Choksi's non-payment of penalties, the regulatory authority has directed the attachment of his bank accounts, mutual fund investments, and demat account. This order is linked to fines related to cases of fraud and regulatory breaches committed by Choksi.
Previously, SEBI had already taken action against Choksi and his associates for disrupting the capital market. This action is part of ongoing cases where Choksi and his relatives violated stock market regulations.
It should be noted that Mehul Choksi is a primary accused in the Punjab National Bank scam and has been absconding from India for a significant period. Concurrent investigations by the Enforcement Directorate (ED) and the Central Bureau of Investigation (CBI) are ongoing. SEBI's recent order underscores the Indian regulatory agencies' stern stance against economic offenders, ensuring adherence to the law by making all possible efforts.
Mehul Choksi's name surfaced in the infamous Punjab National Bank (PNB) scam of 2018, thrusting him into the spotlight of controversy. This scandal severely shook India's banking sector. In 2018, Punjab National Bank, the second-largest state-owned bank in India, revealed a scandal involving unauthorized issuance of Letters of Undertaking (LoUs) worth approximately 13,000 crore INR by its officials to firms owned by Nirav Modi and Mehul Choksi. These LoUs facilitated foreign loans that were never repaid. Choksi and Nirav Modi allegedly committed this massive fraud with the connivance of bank officials.
Event: 2018 Punjab National Bank Fraud Scandal
(2018)
SEBI Action Against Mehul Choksi
