Mehul Choksi | Bankruptcy court orders liquidation of Mehul Choksi’s Nakshatra World
Nakshatra World is a subsidiary of the fugitive businessman Gitanjali Gems, owned by Mehul Choksi.
New Delhi: The Mumbai division of the NCLT bankruptcy court ordered the liquidation of Nakshatra World, a subsidiary of fugitive businessman Mehul Choksi, Gitanjali Gems. In 2019, ICICI Bank filed for insolvency against the company.
The court appointed Santanu Ray, a partner of Delhi-based AAA Insolvency Professionals LLP, as liquidator. “In view of the CdC decision, we are inclined (…) to initiate liquidation proceedings against the debtor company,” said the dedicated insolvency court in an order issued on Sunday. ICICI Bank did not immediately comment on the matter.
It should be mentioned here that in January 2018, the Central Bureau of Investigation (CBI) discovered a bank fraud costing around Rs 14,357 crore on a complaint filed by the state-owned company Punjab National Bank, the main lender of the promoted Gitanjali group. by Choksi.
One of the companies in the Nakshatra World group, engaged in the design and distribution of jewelry, has been subject to insolvency resolution proceedings since January 2019. No resolution was found as all assets were seized by the Directorate of Enforcement under the Law on the Prevention of Money Laundering.
Two other companies in the group, including Gitanjali Gems and Nakshatra Brands, are also pending before the Mumbai bench of the NCLT, the creditors committee having also filed requests for liquidation of these companies.
Ravikumar Duraisamy and HP Chaturvedi led the bench which placed the order.
A consortium of 31 banks has filed claims for Rs 5,280 crore against the Gitanjali group of companies.
“We will make every effort to release mortgaged assets to financial creditors using our experience of other companies such as Nirav Modi, Vikram Kothari, REI Agro, Varrsana Ispat Limited etc. to expedite the detachment and sale of assets for distribution to stakeholders ”, the Economic times quoted as saying Anil Goel, founder of AAA Insolvency Professionals LLP.