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The Securities and Exchange Board of India (SEBI) has ordered the freezing of all bank accounts, lockers, and financial assets held by fugitive diamantaire Mehul Choksi across Indian banks to recover Rs 2.1 crore in pending dues linked to insider trading violations in the Gitanjali Gems case.

As per SEBI’s recovery notice, Choksi owes a total of Rs 2.1 crore, broken down as:

Penalty: Rs 1.5 crore, imposed on January 31, 2022, by a SEBI Whole-Time Member

Interest: Rs 60 lakh accrued at 1 per cent per month from February 2022 to May 2025

Recovery cost: Rs 1,000

Also Read: Who is Mehul Choksi, the prime accused in PNB fraud?

The penalty stems from violations under securities law in the case of Gitanjali Gems Ltd, the now-defunct company once helmed by Choksi, who is also a key accused in the Rs 13,000 crore Punjab National Bank fraud.

Despite repeated reminders, including a final demand notice issued on May 15, 2025, Choksi made no effort to pay the penalty, forcing SEBI to initiate recovery under Section 28A of the SEBI Act. The regulator flagged the “imminent risk” of Choksi liquidating or moving funds and directed all scheduled commercial banks to immediately attach:

All bank accounts and lockers, whether held individually or jointly

Any present or future receivables, interest, or deposits due to him in Indian banks

Banks have been instructed to report any account or locker belonging to Choksi and block all transactions until further notice. SEBI’s sweeping order applies to all proceeds traceable to the defaulter and will remain in force till the complete recovery of dues.

Mehul Choksi fled India in early 2018 and is currently living in Antigua and Barbuda, despite multiple attempts by Indian agencies to secure his extradition. While criminal proceedings over the PNB scam continue, this particular case relates to regulatory violations under securities law, not criminal fraud.

The SEBI action comes on the heels of renewed scrutiny of high-profile economic offenders. It also follows increased coordination between regulatory and enforcement agencies to fast-track asset recovery from fugitives.

With this attachment, Choksi’s access to Indian banking infrastructure is effectively cut off. Unless he chooses to appeal and clear dues, SEBI is expected to escalate enforcement further. Meanwhile, Indian agencies await extradition breakthroughs, with courts abroad yet to rule conclusively on Choksi’s return.

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