Accused fraudulent entrepreneur Mehul Choksi promoted fine jewellery business Gitanjali Gems has been ordered to be liquidated by the National Company Law Tribunal after being admitted under the Corporate Insolvency Resolution Process back in October 2018.
“The committee of creditors with requisite voting… has approved the liquidation of the corporate debtor in view of bleak chances of receiving any resolution plan,” said the division bench consisting of technical member Anil Raj Chellan and judicial member Kuldip Kumar Kareer, ET Bureau reported. “This tribunal has very limited powers of judicial review in such matters of commercial wisdom.”
Gitanjali Gems has admitted liabilities worth over Rs 12,558 crore and promoter Mehul Choksi is accused of playing a key role in the over $2 billion fraud case involving the Pujab National Bank and other financial entities, along with his nephew Nirav Modi. Due to the alleged fraud, Gitanjali Gems’ affairs are subject to investigation by law enforcement authorities including the Enforcement Directorate and Central Bureau of Investigation.
Indian authorities are still attempting to extradite Mehul Choksi to India to stand trial for fraud. The accused is believed to be residing in Antigua where he took citizenship shortly after news of the case broke. The National Company Law Tribunal has also ordered the liquidation of Nirav Modi’s business Firestar International Private Limited and Indian authorities are involved in a years-long legal process in the UK to extradite Modi to India.
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