Gitanjali Gems, the jewellery retailer promoted by fugitive businessman Mehul Choksi, informed the exchanges on Monday that the Mumbai bench of the National Company Law Tribunal (NCLT) has ordered its liquidation. The order was pronounced on February 7.
Vijay Kumar Garg, the resolution professional of Gitanjali Gems Ltd, had applied for liquidation. The order was passed by a division bench consisting of Judicial Member Kuldip Kumar Kareer and Technical Member Anil Raj Chellan. The tribunal also appointed Santanu T Ray as the liquidator in place of Vijay Kumar Garg, who declined to serve as the liquidator.
Choksi-promoted Gitanjali Gems was originally admitted under the Corporate Insolvency Resolution Process (CIRP) in October 2018 with liabilities of over ₹12,000 crore. Similarly, Nakshatra World, another company linked to Choksi was admitted for liquidation in July 2021.
The 180-day duration of the CIRP had already expired in April 2019.
The exchange filing noted, "It is evident that the assets of Gitanjali Gems were under attachment by the Directorate of Enforcement under the provisions of the PMLA and considering the bleak chances of insolvency resolution amid the ongoing investigations and attachment of assets, the CoC had resolved to liquidate the Corporate Debtor by a majority of 90.16% voting in favour... this Bench is of the opinion that the Corporate Debtor is required to be liquidated."
Choksi, who was the chairman and managing director as well as part of promoter group of Gitanjali Gems, is the maternal uncle of Nirav Modi. Both of whom are facing charges of
defrauding state-owned Punjab National Bank (PNB) of more than
₹14,000 crore.
First Published: Feb 19, 2024 9:00 PM IST
