Comments
The National Company Law Tribunal has admitted the plea by ICICI Bank to initiate insolvency proceedings against Mehul Choksi-led Gitanjali Gems.
The matter was listed before the Mumbai Bench of the NCLT on Wednesday under Section 7 of the Insolvency and Bankruptcy Code.
ICICI Bank had earlier approached the NCLT in a case filed by the Ministry of Corporate Affairs that sought to attach the properties of Choksi.
ICICI Bank, as the lead banker of a consortium of banks, had informed the NCLT that it had lent close to ₹6,000 crore to Gitanjali Gems. The bank is seeking about ₹600 crore as its own dues. A forensic audit of the books of the jewellery company, which was ordered by the lenders, is understood to have been completed.
Gitanjali Gems and Choksi are being investigated by government agencies as part of the over ₹12,000-crore fraud by billionaire jewellery designer Nirav Modi. Choksi has left the country and has taken up citizenship of Antigua and Barbuda. The ICICI Bank scrip fell 3.36 per cent and closed at ₹303.60 apiece on the BSE on Wednesday.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.