National News: The Securities and Exchange Board of India (SEBI) intensified its pursuit of fugitive diamantaire Mehul Choksi by ordering the attachment of his bank accounts, demat holdings, and mutual fund investments to recover Rs 2.1 crore in unpaid dues. This action stems from Choksi’s insider trading violations in Gitanjali Gems, where he shared unpublished price-sensitive information, leading to a Rs 1.5 crore penalty imposed in January 2022. With accrued interest of Rs 60 lakh, the total dues prompted SEBI’s move after Choksi ignored a May 15, 2025, demand notice. The order, effective immediately, prohibits debits from his accounts while allowing credits, reflecting SEBI’s determination to enforce financial accountability. Choksi, currently in Belgium resisting extradition for the Rs 14,000 crore Punjab National Bank (PNB) fraud, faces mounting legal challenges as SEBI’s crackdown tightens the noose.
SEBI’s Decisive Action
SEBI’s June 4 order targets Choksi’s financial assets to recover Rs 2.1 crore, comprising the original fine and interest for non-compliance in the Gitanjali Gems case. The regulator found that Choksi, as a key promoter, engaged in insider trading by sharing confidential information between April and August 2017, manipulating share prices before the PNB fraud surfaced. After Choksi failed to pay the penalty or respond to notices, SEBI invoked its recovery powers under the Securities Contracts (Regulation) Act. The attachment covers all bank accounts, demat securities, and mutual fund folios linked to Choksi, ensuring he cannot liquidate assets to evade payment. Banks and depositories have been directed to comply, with SEBI warning of further action if dues remain unpaid. This move underscores SEBI’s resolve to hold high-profile violators accountable, despite Choksi’s fugitive status.
Choksi Faces SEBI Heat
The SEBI crackdown on Choksi signals a broader effort to restore investor confidence in India’s financial markets, tarnished by high-profile frauds like the PNB scam. Choksi’s role in the 2018 banking crisis, alongside nephew Nirav Modi, eroded trust in corporate governance. The asset freeze, reported by @CNBCTV18News
on X, has sparked public support for stricter enforcement. However, Choksi’s lawyers in Belgium claim the action is “politically motivated,” complicating his extradition case. SEBI’s move also pressures other defaulters, as the regulator plans similar actions in pending cases.
