Mehul Choksi’s Gitanjali Gems faces liquidation order by bankruptcy court

Fraudulent businessman accused Mehul Choksi the National Company Law Tribunal ordered the liquidation of promoted fine jewelery company Gitanjali Gems after it was admitted into the corporate insolvency resolution process in October 2018.

“the committee of creditors with requisite vote…has approved the liquidation of the corporate debtor in view of the bleak prospects of receiving any resolution plan,” said the division bench comprising technical member Anil Raj Chellan and member judicial Kuldip Kumar Kareer, reported ET Bureau. . “This court has very limited powers of judicial review in matters of commercial wisdom.”

Gitanjali Gems has admitted liabilities worth over Rs 12,558 crore and promoter Mehul Choksi is accused of playing a key role in the over $2 billion fraud case involving Pujab National Bank and other financial entities, along with his nephew. Nirav Modi. Due to the alleged fraud, the affairs of Gitanjali Gems are subject to investigation by law enforcement authorities, including the Enforcement Directorate and the Central Bureau of Investigation.

Indian authorities are still trying to extradite Mehul Choksi to India to stand trial for fraud. the accused is believed to reside in Antigua, where he obtained citizenship shortly after news of the case broke. the National Company Law Tribunal also ordered the liquidation of Nirav Modi’s business, Firestar International. Private Indian and limited authorities are involved in a years-long legal process in the United Kingdom to extradite Modi to India.