SFIO drops charges against numerous entities and individuals in Gitanjali Gems fraud case (#1686438)

The Serious Fraud Investigation Office has moved to drop charges against 60 individuals and entities in the ongoing Gitanjali Gems fraud case. The agency will continue to proceed against diamantaires Mehul Choksi and Nirav Modi, who are the principal accused in the case. 

“Names party respondents are discharged, as no prayers are stated to be pressed against them in view of the SFIO investigation report received in the matter,” announced the Mumbai bench of the National Company Law Tribunal in its order, ET Bureau reported. “Accordingly, the party respondents shall have no bar in dealing with their movable or immovable properties in any manner from the date of this order.”

The list of people and companies against which charges have been dropped include Nirav Modi’s businesses Firestar Diamond FZE and Firestar Diamond Private Limited. Modi’s wife Ami Modi, brother Nehal Modi, and children Rohin, Ananya, and Apasha Modi are also no longer implicated in the case. 

“Six years is a long time when prohibitory orders hurt ordinary business and personal life,” said law firm NSA Legal’s managing partner Nipun Singhvi, the Economic Times reported. “Deletion of parties from prohibitory orders passed by NCLT will be a sigh of relief for people who don’t have any nexus to the alleged breaches. However, a blanket ben on the sale or purchase of properties should be relooked [sic] as the same leads to undue harassment of parties such as unconnected independent directors.”

Nirav Modi and his uncle Mehul Choksi have been accused of one of the largest scale frauds in India’s banking history, involving the Punjab National Bank. Both Modi and Choksi are outside of India and the government has been working to attempt to extradite them to India to stand trial.