CBI files another case against Mehul Choksi after raids

India Central Bureau of Investigation(CBI) on Monday filed a case against Mehul Choksi who is wanted in the multi-billion dollar Punjab National Bank (PNB) fraud along with Nirav Modi.

The case involves Choksi allegedly inflating the value of diamonds and jewellery as the CBI reportedly booked Choksi and his company Gitanjali Gems including valuers Surajmal Lallu Bhai and Co, Narendra Jhaveri, Pradip C Shah and Shrenik Shah.

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Industrial Finance Corporation of India (IFCI) Ltd had alleged that Choksi had approached it seeking Rs 25 crore working capital loan as he pledged shares, gold and diamond jewellery.

The valuers at the time had said the jewellery was in the range of Rs 34-45 crore on the basis of which IFCI sanctioned the loan.

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However, after the company allegedly defaulted on payments as IFCI called in the shares and jewellery but it could sell 6,48,822 shares for just Rs 4,07 crore even as 20,60,054 shares were pledged but the client ID of Mehul Choksi was blocked by NSDL, according to the complaint.

The incident was recorded in the FIR. Choksi along with Nirav Modi has been accused by Indian authorities of siphoning off over billions from Punjab National Bank (PNB) using fraudulent letters of undertaking and foreign letters of credit.

(With inputs from Agencies)

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