A Mumbai special court has issued non-bailable warrants against Mehul Choksi and his wife in a case involving Gitanjali Gems’ customer deposit schemes.
What Is the Case Against Choksi and His Wife?
The case concerns alleged irregularities in deposit schemes operated by Gitanjali Gems and the company’s alleged failure to return customers’ money within the prescribed period. The proceedings were initiated following a complaint filed by the Registrar of Companies (RoC), Mumbai, which alleged violations of the Companies Act.
According to the complaint, Gitanjali Gems had introduced several schemes to collect deposits from customers, including one known as ‘Shagun Labh’. The company allegedly accepted money under these schemes but failed to repay the deposits within the stipulated timeframe.
The RoC subsequently initiated legal proceedings over the alleged violations. The latest action by the special court marks a further step in the case, which remains separate from the investigations into the alleged Punjab National Bank (PNB) fraud involving Choksi.
The complaint focuses on the company’s handling of customer deposits and its alleged failure to fulfil its repayment obligations. The allegations are to be examined through the legal proceedings.
Why Did the Court Issue Non-Bailable Warrants?
Advocate Sandeep Singh, who represents the Registrar of Companies in the case, said notices had been issued repeatedly directing Choksi and his wife, Preeti Choksi, to appear before the court. However, they allegedly failed to appear despite several notices.
Following their repeated non-appearances, the court issued non-bailable warrants against both accused. The matter is currently pending before a special court in Mumbai.
According to Singh, Choksi’s lawyers had reportedly sought additional time, citing injuries he had sustained while in jail. They also reportedly argued that his wife needed to remain with him to provide care.
The court’s decision followed the continued failure of the couple to appear, according to the lawyer representing the RoC. The warrant relates to the proceedings concerning the alleged irregularities in Gitanjali Gems’ deposit schemes.
The issuance of a non-bailable warrant is a procedural development in the case and does not, by itself, establish the allegations against either accused. Further proceedings will determine how the complaint is addressed under the applicable provisions of the Companies Act.
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How Much Money Was Allegedly Collected From Customers?
The amount involved in the deposit schemes remains unclear, with differing figures reported in connection with the case. One account cited collections exceeding ₹5 crore, while another put the amount at more than ₹45 crore.
The exact sum could not be independently established from the available information. The central allegation, however, concerns the failure to return customer deposits within the prescribed period.
The RoC’s complaint relates to the company’s deposit-taking activities and its alleged non-compliance with the relevant provisions of the Companies Act. The reported discrepancy in the figures means the total amount at issue should be treated cautiously until clarified through the proceedings.
The case is distinct from the PNB fraud investigations, which concern separate allegations of large-scale banking irregularities. Although both matters involve Choksi, they relate to different alleged offences and legal proceedings.
What Is Choksi’s Position in the Separate PNB Case?
Choksi was arrested in Antwerp, Belgium, in April 2025. Before his arrest, he had been living in Antigua and Barbuda. He left India in 2018 after the PNB fraud came to light.
Choksi and his nephew, Nirav Modi, are accused of involvement in the alleged banking fraud linked to Punjab National Bank. The case concerns financial irregularities involving losses worth thousands of crores of rupees.
While Choksi was arrested in Belgium, Modi remains in prison in London as legal proceedings related to his extradition to India continue.
The Central Bureau of Investigation (CBI) and the Enforcement Directorate (ED) have also pursued cases against Choksi in connection with the alleged PNB fraud. Those investigations remain separate from the RoC complaint concerning Gitanjali Gems’ customer deposit schemes.
The latest warrants add another legal proceeding to the cases involving Choksi. The Mumbai court will consider the allegations and relevant documents as the Companies Act case progresses.
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