Bankers Vote to Liquidate Fugitive Mehul Choksi-Owned Gitanjali Gems on Time Over-run

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Mumbai: Lenders of Gitanjali Gems have rejected resolution proposals and have voted for liquidation of the company, which owes over Rs 8,000 crore to creditors, citing time over-run.

The committee of creditors met on March 28, and with a majority of 54.14%, they rejected extension of the resolution process, and chose to go for liquidation, the company informed the exchanges on Tuesday.

“The 180 days since the resolution process began ended on April 6. Since extension is not approved by the lenders, the next logical step is to go for liquidation,” the company said in a BSE filing.

Both Gitanjali Gems’ Mehul Choksi and his nephew diamantaire Nirav Modi are absconding and are facing extradition now. They are being probed under various criminal laws after the Rs 14,000-crore PNB fraud came to light in February 2018.
The corporate affairs ministry had earlier sought the NCLT’s intervention to attach the properties owned by Modi, his wife Ami, brother Nishal and uncle Choksi, across the world. Modi and Choksi and their families own or control about 114 companies.

Sebi is also looking into the matter and the ministry is also seeking the help of the Central Board of Direct Taxes to ascertain the assets of the prime accused and other related parties.