SEBI Takes Action Against Mehul Choksi, Freezing Assets Worth Rs 2.1 Crore

SEBI's Directive to Recover Dues

In a significant enforcement action, the Securities and Exchange Board of India (SEBI) has mandated banks and mutual funds to seize the bank accounts and shareholdings of fugitive businessman Mehul Choksi. This move aims to recover dues amounting to Rs 2.10 crore due to violations of insider trading regulations associated with Gitanjali Gems shares.

Details of the Financial Penalty

The total amount of Rs 2.1 crore comprises a penalty of Rs 1.5 crore, Rs 60 lakh in interest accrued from February 2022 to May 2025 at a rate of 1 percent per month, and a nominal recovery cost of Rs 1,000.

Notice Issued to Choksi

On May 15, 2025, SEBI issued a notice to Choksi, demanding payment of the dues within 15 days. The notice warned that failure to comply could lead to the freezing of his assets.

Concerns Over Asset Disposal

In its communication to the banks, SEBI expressed concern that Choksi might dispose of his funds, which could hinder the recovery process. The letter emphasized the need for immediate action to prevent any withdrawals from his accounts.

Mutual Funds Instructed to Act

SEBI has also reached out to mutual funds, instructing them to attach Choksi's demat accounts and mutual fund holdings. Additionally, banks are required to provide comprehensive details about Choksi's accounts, including any lockers and the latest bank statements.

Background on Mehul Choksi

Mehul Choksi is a prominent fugitive businessman implicated in the Punjab National Bank (PNB) scam. He, along with his nephew Nirav Modi, is accused of defrauding the bank of over Rs 14,000 crore.