SEBI Directs Mehul Choksi to Pay ₹2.1 Crore for Insider Trading Violation

Mehul Choksi, a key figure in one of India’s biggest financial scandals, is once again under regulatory scrutiny. The Securities and Exchange Board of India (SEBI) has issued a recovery notice for insider trading violations connected to Gitanjali Gems Ltd, intensifying the legal actions already in motion against the fugitive businessman, according to a PTI report. This development further exposes the depth of Choksi's alleged financial misconduct and the continued efforts by Indian authorities to hold him accountable.

SEBI Cracks Down on Insider Trading at Gitanjali Gems

In a notice dated 15 May, SEBI demanded that Mehul Choksi pay ₹2.1 crore for breaching insider trading regulations. The amount includes a penalty of ₹1.5 crore and interest of ₹60 lakh. SEBI warned that if the payment is not made within 15 days, enforcement action will be taken, which may include the attachment and sale of his movable and immovable assets, freezing of bank accounts, and possible arrest.

A Trail of Scams and Legal Battles

Beyond SEBI’s actions, Choksi remains a central figure in the ₹14,000 crore Punjab National Bank (PNB) scam. He was the chairman and promoter of Gitanjali Gems and is the maternal uncle of Nirav Modi, who is also implicated in the fraud. After the scam surfaced in early 2018, both men fled India. While Nirav Modi was arrested in the UK by Scotland Yard in March 2019, Choksi has been living in Antigua since 2018. He was arrested in Belgium last month following an extradition request by Indian authorities.

In another development, a Mumbai court recently issued a non-bailable warrant against Choksi in connection with a ₹55.27 crore fraud involving Bezel Jewellery (India) Private Limited. The Central Bureau of Investigation (CBI) registered the case in July 2022 based on a complaint from Canara Bank. Choksi and 3 others, acting as directors of Bezel Jewellery, are accused of orchestrating fake transactions, defaulting on repayments, and misusing borrowed funds. The fraud affected a banking consortium led by Canara Bank and including the Bank of Maharashtra.

Read More: PNB Share Update: Mehul Choksi Arrested in ₹13,500 Crore Fraud Case

Conclusion

Mehul Choksi’s mounting legal troubles reflect a long history of financial misconduct, with multiple agencies working to bring him to justice. The SEBI notice adds another chapter to an already complex saga of insider trading, bank fraud, and corporate malpractice, emphasising the scale of accountability being pursued by Indian regulators and law enforcement.
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