Gitanjali Gems at Hyderabad Gems SEZ is under the CBI scanner for illegal fund transfers tied to fugitive jeweller Mehul Choksi’s massive bank fraud.
Hyderabad Fugitive businessman Mehul Chinubhai Choksi, who was arrested in Belgium in connection with the Rs 14,000-crore Punjab National Bank fraud, had business links in Hyderabad. He had set up Gitanjali Gems at Hyderabad Gems Park — also known as Hyderabad Gems SEZ Ltd — and allegedly made illegal transfers of funds from Hyderabad.
CBI officials, who registered a number of FIRs against Mehul Choksi, had also named Gitanjali Gems and Hyderabad Gems SEZ in an FIR registered against him on December 14, 2022. They are probing the case including the transfer of funds.
According to sources, Gitanjali Gems was engaged in manufacturing and trading in diamonds, precious stones, and jewellery and was dealing with banks, availing credit facilities from a consortium led by ICICI.
“Gitanjali Gems availed loans by pledging several securities located at different places, including land and buildings located at Survey No. 1/1 of Imarath Kancha at Raviryal, Maheshwaram mandal in Rangareddy district, and the land on a ‘pari passu (on equal footing)’ second charge basis of the consortium of Gitanjali Gems Limited (GGL). Choksi also provided personal and corporate securities such as Hyderabad Gems SEZ Ltd to the banks,” sources said.
Sources said that the bankers conducted a forensic audit of the accounts of Gitanjali Gems and other companies owned by Choksi. Gitanjali Gems, along with two other companies — Nakshatra and Gili India — made transactions in six branches of overseas banks across five countries. Choksi, through the Gitanjali group of companies — Gili and Nakshatra brands — carried out credit transactions in different countries on the principal amount.
The CBI collected details of foreign transactions made by the Gitanjali Group in SBI, Mauritius; Bank of India, Antwerp, Belgium; Canara Bank, Bahrain; SBI, Frankfurt; Axis Bank; and Allahabad Bank, Hong Kong.
Box: Scam timeline
2018
Jan. 29: PNB lodges complaint with CBI in connection with a bank fraud against Nirav Modi and his uncle Mehul Choksi.
Jan. 31: CBI registers cases against Choksi, Nirav Modi and others.
Feb. 18: CBI conducts searches at Gitanjali Gems and Hyderabad Gems SEZ following the cases registered in Rs 13,000 crore bank fraud.
2022
Dec. 14: CBI registers several cases including Gitanjali Gems.
Box: Funds transfer
2017
Feb. 13: RTGS transfer of Rs 7.2 lakh to Gitanjali Gems from Catholic Syrian Bank
Feb. 13: RTGS transfer of Rs 9.8 crore to Gitanjali Gems
Feb. 13: RTGS transfer of Rs 9 crore to Gitanjali Gems
(Transactions were done months before Mehul Choksi fled India)
