Bankers Vote To Liquidate Gitanjali Gems
A woman walks past a Gitanjali Gems Ltd. Giantti store in Mumbai. (Photographer: Dhiraj Singh/Bloomberg)

Bankers Vote To Liquidate Gitanjali Gems

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Lenders of Gitanjali Gems Ltd. have rejected resolution proposals voting for liquidation of the company, which owes over Rs 8,000 crore to creditors, citing time over-run.

The committee of creditors met on March 28, and with a majority of 54.14 percent, they rejected extension of the resolution process, and chose to go for liquidation, the company informed the exchanges Tuesday.

“The 180 days since the resolution process began ended on April 6. Since extension is not approved by the lenders, the next logical step is to go for liquidation,” the company said in a BSE filing.

Both Gitanjali Gems’ Mehul Choksi and his nephew diamantaire Nirav Modi are absconding and are facing extradition now. They are being probed under various criminal laws after the Rs 14,000-crore Punjab National Bank fraud came to light in February 2018.

The corporate affairs ministry had earlier sought the National Company Law Tribunal’s intervention to attach the properties owned by Modi, his wife Ami, brother Nishal and uncle Choksi, across the world. Modi and Choksi and their families own or control as many as around 114 companies.

The Securities and Exchange Board of India is also looking into the matter and the ministry is also seeking the help of the Central Board of Direct Taxes to ascertain the assets of the prime accused and other related parties.

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