While Mehul Choksi is evading the Indian investigative agencies, hiding in far away Antigua, the Securities and Exchanges Board of India (SEBI) has imposed a fine of ₹5 crore on Geetanjali Gems, the company promoted by Choksi, for violation of norms. The fine will have to be paid by the company, Mehul Choksi and Dhanesh Sheth, an Executive Director of Geetanjali Gems. The company has been found in violation of listing as well as regulatory norms.
The order by SEBI has been delivered by Adjudicating Officer Santosh Shukla and it states, "I am of the considered opinion that the deliberate defiance of the mandatory obligations and hiding the crucial and material information from investors, regulators and stock exchange, as found in this case should be dealt with sternly and the penalty in such cases should serve as effective deterrence".
The ₹5 crore penalty should be considered stiff based on the previous such cases, but the above explanation by the Adjudicating Officer of SEBI perhaps puts it in perspective. The larger question remains if SEBI will be able to recover this fine since it is not certain the company has any organization left ever since the scandal broke and Choksi escaped the country.
Mehul Choksi is the maternal uncle of Nirav Modi, the diamantaire who is currently languishing in a jail in the UK awaiting the orders of the court on his extradition to India to stand trial for allegedly defrauding Punjab National Bank to the tune of ₹14,000 crore.
Although the uncle and nephew left the country, they are virtually on the run. Modi was untraceable for a better part of six months before the media tracked him down in London. He has been trying to avoid being sent back to India. The slow trial process in that country is delaying a decision by the court but he has not been able to get out of prison despite his best efforts through his legal team.
Choksi managed to obtain citizenship in Antigua with the hope that he would escape being deported. But the West Indian country’s Prime Minister himself has gone on record that certain material facts had been hidden by Choksi while seeking citizenship and the process can be reversed.