Choksi’s Gitanjali Gems to be Liquidated as Court Wants Him to Physically Show Up in Court

Gitanjali Gems, a popular Indian jewelry brand founded by Antiguan Mehul Choksi, is set to be liquidated after the National Company Law Tribunal (NCLT) approved the move.

This follows an insolvency order issued in October 2018 when the company disclosed liabilities of over US$1.51bn.

Choksi, who was the managing director of Gitanjali, is suspected of an alleged $1.8bn fraud along with his nephew Nirav Modi against India’s second-largest state lender, Punjab National Bank (PNB).

Choksi now resides in Antigua and is currently fighting moves to extradite him to India to stand trial.

Nirav Modi, on the other hand, lost his last-ditch battle against extradition to India but remains in a UK prison amid ongoing legal proceedings.

Gitanjali was once a major player in India’s organized jewelry market, boasting over a 50% share.

However, the company has been under investigation by India’s Enforcement Directorate (ED) and Central Bureau of Investigation (CBI) for some time.

Vijay Kumar Garg, the resolution professional for the company, informed the NCLT that Gitanjali’s affairs were currently being investigated by the ED and CBI.

Meanwhile, the Delhi High Court has asked Choksi, who has several pending proceedings against him in India, to be physically present before it for a hearing in his case against the Netflix series ‘Bad Boy Billionaires.’

Choksi had filed a writ petition for the enforcement of a private right, seeking to pre-screen the Netflix docuseries, claiming that he was falsely accused of various crimes in India and had the right to a presumption of innocence and a fair trial along with the right to reputation.

The court denied relief to Choksi, stating that a writ petition for the enforcement of a private right was not maintainable.

Netflix opposed the plea, claiming that internet video streaming platforms cannot be regulated and that the appropriate remedy for Choksi is to file a civil suit.

The high court noted that if Choksi failed in his appeal, and if any costs were imposed on him, then there would be no way to recover the amount.