Mumbai: A fresh case has been registered by Central Bureau of Investigation (CBI) against fugitive diamond merchant Mehul Choksi and his company Gitanjali Gems for allegedly defrauding Industrial Finance Corporation of India (IFCI) of Rs 22 crore during the period 2014-18.
According to an FIR lodged on April 28, Gitanjali Gems, its director Choksi and some others were involved in a criminal conspiracy to cheat IFCI (Industrial Finance Corporation of India).
“A written complaint was received from Yamini Das, Asst General Manager (Law), IFCI Ltd, Mumbai alleging therein that Gitanjali Gems Ltd (GGL), Mehul Choksi and other accused persons during the period 2014 to 2018 were party to a criminal conspiracy to cheat IFCI,” the FIR stated.
Gitanjali Gems, through its director, approached IFCI for financial assistance vis-à-vis its long-term working capital requirement.
“IFCI sanctioned and disbursed the entire amount of corporate loan of Rs 25 crore in March 2016 in favour of Gitanjali Gems… on the basis of security cover of 2 times based on the pledge of shares and pledge of gold, diamond and gold CS studded jewellery,” the compliant said.
However, Gitanjali Gems started defaulting in repayment of loan instalments and to recover the defaulted amount, IFCI invoked the pledge and out of total pledged 20,60,054 shares, IFCI could only sell 6,48,822 shares amounting to Rs 4,07,07,881 as the client ID of Choksi was suspended by NSDL, the complaint stated.
It also came to light that the diamonds are of low quality, lab prepared chemical vapor diamonds and other inferior colour stones and not real gemstones.
The Indian government is pursuing extradition of Choksi, who currently lives in Antigua and Barbuda.
He had gone missing last May but was caught in Dominica, and charged with illegal entry by after allegedly escaping from Antigua and Barbuda in a possible attempt to evade extradition to India.
He was later granted interim bail on medical grounds.
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