Fugitive diamantaire Mehul Choksi, currently wanted in connection with the Rs 1,400 crore Punjab National Bank (PNB) fraud case, has encountered additional legal challenges. A non-bailable warrant has been issued against him by a Mumbai court regarding violations of the Companies Act linked to his business, Gitanjali Gems. This warrant was reportedly issued after both Choksi and his wife, Preeti Choksi, failed to appear in court despite multiple notices.

Advocate Sandeep Singh, representing the Registrar of Companies (RoC), confirmed that the case is currently pending before a special court in Mumbai. The allegations centre on irregularities concerning customer deposit schemes introduced by Gitanjali Gems, including one named Shagun Labh. The company allegedly collected substantial sums from customers but did not return these deposits within the agreed timeframe, prompting the RoC to take legal action.

According to Singh, Gitanjali Gems reportedly amassed deposits worth several crores of rupees through these schemes. One account indicated collections exceeding Rs 5 crore, while another suggested an amount greater than Rs 45 crore. However, the precise figure involved in the case remains unverified based on the available information.

Choksi’s Legal Representation and Health Concerns

Choksi’s legal team has allegedly requested additional time to address the court, citing that he sustained injuries while in custody. They also argued that Preeti Choksi should remain with him for care. Advocate Singh elaborated on these claims during an interview with India Today TV, explaining that these factors contributed to the issuance of the non-bailable warrant.

This latest warrant adds to the mounting legal troubles faced by Choksi, who was apprehended in Antwerp, Belgium, in April 2025. Prior to his arrest, he had been residing in Antigua and Barbuda. Choksi left India in 2018 following the revelation of the PNB fraud, and he, along with his nephew Nirav Modi, is implicated in an alleged Rs 12,500 crore banking fraud involving the Punjab National Bank.

While Choksi is currently in custody in Belgium, Nirav Modi remains incarcerated in a London prison, where extradition proceedings to India are ongoing. The Central Bureau of Investigation (CBI) and the Enforcement Directorate (ED) have initiated separate legal actions against Choksi in relation to the PNB fraud, which include warrants and other legal measures.

Distinction Between Cases and Future Proceedings

The recent non-bailable warrant against Choksi is distinct from the ongoing investigations into the PNB banking fraud. The complaint filed by the RoC in Mumbai specifically addresses alleged violations associated with Gitanjali Gems’ customer deposit schemes and the company’s failure to refund money to depositors within the designated period. The court’s decision to issue a warrant was influenced by the repeated non-appearances of both Choksi and his wife.

As legal proceedings unfold, the implications of this warrant could further complicate Choksi’s already precarious legal situation. The RoC’s actions highlight the serious nature of the allegations against Gitanjali Gems, which could have significant consequences for both Choksi and his business operations.

With multiple legal fronts to navigate, Choksi’s future remains uncertain as he faces scrutiny not only for the PNB fraud but also for the alleged misconduct related to his company. The developments in this case will continue to be monitored closely by authorities and the public alike.

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