Mehul Choksi’s Advocate Vijay Aggarwal on Tuesday said that the Central Bureau of Investigation’s (CBI) fresh case against fugitive diamantaire and his company Gitanjali Gems, for allegedly defrauding the Industrial Finance Corporation of India (IFCI), will not stand in court.
“This case may be good for coffee table talk, but will not stand in the court,” Aggarwal told ANI. Further, the Advocate said that in the earlier cases, “not the slightest development has taken place in trial and this will also go into the storage house.”
Slamming the central agency, Choksi’s Advocate said that the financial institution should have carried valuation immediately after default. “Government agencies can go up to Antigua to kidnap the man but they have not checked their own house and have found it now.”
The Central Bureau of Investigation (CBI) recently registered a fresh case against fugitive diamantaire Mehul Choksi and his company Gitanjali Gems for allegedly defrauding the Industrial Finance Corporation of India (IFCI).
A senior CBI officer said that after the preliminary inquiry into the complaint received against Mehul Choksi and his company Gitanjali Gems from the Assistant General Manager (AGM) of IFCI, an FIR under IPC section 420 (cheating), 468 ( Forgery for purpose of cheating) and 471 (Whoever fraudulently or dishonestly uses as genuine) has been registered in Mumbai.
The officer informed that during the period 2014 to 2018, IFCI Ltd relying on the representation, assurances and undertaking of said private company as well as its Director and the value of the pledged jewels on the basis of valuation conducted by Valuers, had disbursed the entire loan amount of Rs 25 crore (approximately) on the basis of security cover of two times, pledge of shares, pledge of gold, diamond and gold CS studded jewellery.
It was further alleged that the accused had started committing defaults in the repayment of loan instalments and in order to recover the defaulted amount of the instalments, IFCI Ltd invoked the pledge and the fresh valuation obtained by IFCI dropped the valuation of the pledged jewels by 90 per cent.
The CBI also alleged that the Director colluded with the Valuers and got the valuation of the pledged jewels done with exorbitant and inflated value. The diamonds were alleged of low quality and not real gemstones, the officer said.
Searches were conducted at around eight premises of the accused Valuers in Mumbai and Kolkata which led to the recovery of incriminating documents.