SEBI Directs Indian Banks & Mutual Funds to Remit Mehul Choksi’s Attached Assets Worth ₹2.13 Crore as Belgium Confirms His Presence [Read Order]

The Securities and Exchange Board of India (SEBI) has issued a directive to all banks and mutual funds in the country, instructing them to remit any attached assets belonging to Mehul Choksi in order to recover dues amounting to ₹2.13 crore.

This directive was issued by SEBI’s Recovery and Refund Department, Recovery Division-II, as part of ongoing efforts to enforce the mandates of Recovery Certificate and Attachment Proceedings against the fugitive businessman who fled India in 2018 following alleged fraud of about US $2 billion at a Mumbai-based branch of the Punjab National Bank (PNB).

The official communication, signed by Recovery Officer Pankaj Yuvaraj Shinde, directs financial institutions to transfer any funds or assets held in Choksi’s name directly to SEBI’s designated ICICI Bank account via electronic transfer and report all remittance details to the regulator without delay.

SEBI is permitted to take measures similar to those available for the recovery of tax arrears as empowered by provisions under the SEBI Act, 1992. The communication also specifies a specific format for institutions to report their compliance, including case reference, payee details, payment date, transaction number, amount, and bank information.

SEBI has clarified that if any of the addressed banks or mutual funds do not hold any account or folio for Mehul Choksi, no further action or response is required to be taken by them.

\Who is Mehul Choksi?

Mehul Choksi, is a fugitive businessman and former owner of the Gitanjali Group, who fled India in January 2018 after being implicated in the Punjab National Bank (PNB) loan fraud. The high-profile case, which also involved his nephew Nirav Modi, is centred around allegations that the duo orchestrated fraudulent transactions that defrauded PNB of over ₹14,000 crore.

Both Choksi and Modi, along with family members, employees, and bank officials, were booked by Indian enforcement agencies in 2018 for their roles in the scam.

Belgium confirms Choksi’s presence in the country

This urgent enforcement action comes in the wake of confirmation by Belgian authorities that Mehul Choksi is currently residing in Belgium. According to statements provided to the media by Belgium’s Federal Public Service (FPS) Foreign Affairs, the country is aware of Choksi’s presence and is giving the matter significant attention, although officials declined to comment on individual cases.

Reports indicate that Indian authorities have previously requested extradition proceedings against Choksi, who is said to be living in Antwerp with his wife, Preeti after having previously resided in Antigua and Barbuda.

SEBI’s latest move underscores the regulator’s determination to pursue recovery from high-profile defaulters and serves as a clear directive to the financial sector to ensure prompt and full compliance with asset attachment orders in such cases.

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