CBI charges Choksi with fresh fraud case of Rs 22 Cr

New Delhi: A new case has been charged against fugitive Mehul Choksi and his company Gitanjali Gems by the CBI for alleged defrauding of the Industrial Finance Corporation of India Ltd for Rs 22 crore, PTI reported. Post registering the case, CBI conducted raids at eight locations owned by those named in the case in Mumbai and Kolkata, and the agency has recovered incriminating documents, PTI reports.

IFCI limited filed a complaint naming Gitanjali Gems Ltd, its director Mehul Choksi, three valuers -- Narendra Jhaveri, Pradip C. Shah and Shrenik R. Shah -- and a private firm, Surajmal Lallu Bhai & Co, accusing them of causing a loss of Rs 22.06 crore to it. According to the complaint, IFCI Ltd. relying on the representation, assurances, and undertaking of the said private company as well as its director and the value of the pledged jewels based on valuation conducted by the valuers, had disbursed the entire loan amount of Rs 25 crore based on security cover of two times, pledge of shares, pledge of gold, diamond and gold CS studded jewellery. This was from 2014 to 2018.

When the accused started defaulting on repayment of the loan instalments, IFCI Ltd. invoked the pledge. But, the new valuation obtained by IFCI dropped the valuation of the pledged jewels by 90%, according to the complaint.

A CBI official said, "Choksi colluded with the valuers and got the valuation of the pledged jewels done with exorbitant and inflated value. The diamonds were of low quality and not real gemstones."

Choksi is wanted in India by CBI and Enforcement Department in the Rs 13,500 crore Punjab National Bank (PNB) fraud case.