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Mehul Choksi pledged over-valued, low quality jewels to get loan: CBI
The federal agency plans to use the fresh charge sheet, filed last month before a Mumbai court and reviewed by HT, to convince the Interpol that Choksi is a habitual offender
Fugitive businessman Mehul Choksi pledged overvalued, low quality laboratory prepared diamonds and gemstones to get a loan from Industrial Finance Corporation of India (IFCI) Ltd, a government entity, in 2016, the Central Bureau of Investigation (CBI) has said in its latest charge sheet against the diamantaire.
The studded jewellery, which were pledged to get this loan, was already under pledge for another corporate loan availed by one of Choksi’s companies earlier, CBI added.
The federal agency plans to use the fresh charge sheet, filed last month before a Mumbai court and reviewed by HT, to convince the Interpol that Choksi is a habitual offender as well as, in the ongoing extradition proceedings in Antigua and Barbuda, people familiar with the developments said.
Interpol withdrew its red notice – a global arrest warrant – against Choksi after he alleged that Indian agents abducted him from Antigua and Barbuda in May 2021.
The Indian government “vehemently contested” the deletion of Choksi’s name from Interpol’s wanted list but the global police body wasn’t convinced, and prime facie found credence in his allegations that Indian agencies attempted to abduct him, HT had reported on March 21.
Also Read: ‘Extradition request unaffected’: CBI after Interpol removes red notice against Mehul Choksi
The businessman is wanted by India in the $2 billion Punjab National Bank (PNB) fraud case.
The latest case against Choksi, taken up by CBI on April 30 last year, pertains to a loan of ₹25 crore taken from IFCI Ltd, by pledging his company’s shares as well as gold and diamond jewellery.
Besides him, his company Gitanjali Gems Ltd and valuers Surajmal Lallu Bhai and Co, Narendra Jhaveri, Pradip C Shah and Shrenik Shah have been named in the case.
CBI has alleged that four different valuers, in connivance with Choksi, submitted inflated valuations – ranging from ₹34 crore to ₹45 crore – based on which IFCI disbursed the loan of ₹25 crore into the account of Gitanjali Gems Ltd on September 30, 2016.
On the same day, the entire loan amount was “diverted to Premier Intertrade, a partnership firm controlled by Choksi”, the charge sheet said.
After Gitanjali Gems failed to repay the loan, IFCI got a fresh valuation of the 896 pieces of jewellery done through two valuers, who reported the value of jewellery at ₹2.03 crore and ₹70.33 lakh, respectively, approximately 98% less than what was declared by Choksi.
The valuers, CBI said, “have stated that the reduction in value of the studded jewellery is due to the inferior quality of diamond and ruby (colour stones).”
“The valuers also observed that the diamonds are of low-quality lab prepared chemical vapour diamonds and other inferior colour stones and not real gemstones,” CBI added.
The agency also got an independent valuation of the pledged jewellery done through two government-approved valuers in the presence of independent witnesses.
The two valuers revealed the value of 896 pieces of jewellery to be ₹69 lakh and ₹76 lakh, respectively. They also confirmed that the jewels were of inferior quality, according to the charge sheet.
“Investigation, thus, revealed that the accused persons in conspiracy with each other, induced the bank in sanctioning the loan amount by submitting highly inflated and false valuation reports of the pledged jewellery,” the charge sheet said.
Dismissing the allegations, Choksi’s lawyer Vijay Aggarwal said, “All these cases are baseless and would eventually die in the courts. Earlier charge sheets have not proceeded an inch in courts for the last five years.”
