In a major crackdown, the financial markets regulator, Securities and Exchange Board of India (SEBI), has directed banks and mutual funds to attach the bank accounts and shares and mutual fund holdings of fugitive Indian businessman Mehul Choksi to recover Rs 2.10 crore dues for violating insider trading rules linked to shares of Gitanjali Gems.
The Securities and Exchange Board of India (SEBI) has issued an attachment order for bank and demat accounts and mutual fund folios worth Rs 2.1 crore as part of recovery proceedings against a defaulter identified as Mehul Choksi. Directions to CEOs of banks and Mutual Funds of…
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The dues of Rs 2.1 crore include Rs 1.5 crore penalty, Rs 60 lakh as interest (February 2022 to May 2025 at 1 per cent per month) and Rs 1,000 as recovery cost.
SEBI sent a notice to Choksi
On May 15, 2025, SEBI sent Mehul Choksi a notice asking him to pay the dues in 15 days. Failure to do so may result in freezing his assets, SEBI mentioned.
“Whereas no amount has been paid by the Defaulter and there is sufficient reason to believe that the Defaulter may dispose of the amounts/proceeds in the Bank Accounts held with your Bank and realization of amount due under the Recovery Certificate would in consequence be delayed or obstructed,” SEBI wrote in its letter to the banks.
Mutua Funds asked to attach his demat accounts
A similar letter has also been written to mutual funds in India, asking them to attach his demat accounts and mutual fund holdings.
SEBI also asked banks to ensure no debit is made from the defaulter’s accounts, if any.
Banks have also been asked to furnish details of the accounts, including lockers held by the defaulter and a bank statement for the latest year.
Similarly, depositories and mutual funds have been directed to immediately provide details of accounts/folios held by the defaulter, a copy of account statements, and confirmation of attachment of the said accounts/folios.
Choksi is a key accused in PNB Scam
Mehul Choksi is a fugitive Indian businessman who is a key accused in the Punjab National Bank (PNB) scam.
His nephew, Nirav Modi, is also wanted by the probe agencies in the scam. The duo are alleged to have defrauded the bank of more than Rs 14,000 crore.
