A Mumbai special court has issued non-bailable warrants against Mehul Choksi and Preeti Choksi for failing to appear in a Registrar of Companies case. The legal proceedings relate to Gitanjali Gems' failure to refund money collected from public deposit schemes. This action adds to the ongoing legal consequences for the former promoters of the now-defunct jewelry retailer.
A special court in Mumbai has issued non-bailable warrants against Mehul Choksi and his wife, Preeti Choksi. The court took this action after the couple repeatedly failed to comply with legal summons in a case filed by the Registrar of Companies (RoC). The proceedings focus on the mismanagement and eventual failure of public deposit schemes previously operated by Gitanjali Gems, a firm that was once a significant player in the Indian retail jewelry sector.
The core of the legal dispute involves the administration of customer deposit programs, most notably the ‘Shagun Labh’ scheme. Regulators allege that Gitanjali Gems collected capital from individual investors with the promise of returns, but ultimately failed to meet its repayment obligations. This inability to return public funds upon maturity constitutes a direct violation of corporate governance regulations under the Companies Act. The RoC initiated these proceedings to address the grievances of depositors and to enforce compliance with financial regulations.
It is important to distinguish this specific legal action from the much larger banking fraud investigation involving Punjab National Bank. While the banking fraud case remains under the purview of federal agencies such as the Central Bureau of Investigation and the Enforcement Directorate, the current RoC proceedings are technically distinct. This case is centered purely on the regulatory failures and the specific breach of trust regarding the company's deposit-taking activities.
For those observing the fallout of the Gitanjali Gems collapse, this development serves as a recurring reminder of the governance and financial reporting issues that led to the company's downfall in 2018. Following the emergence of the wider banking fraud allegations, the company faced liquidation and widespread scrutiny. The promoters, including Mehul Choksi, have since been involved in a series of legal battles across multiple jurisdictions. Reports from earlier in 2025 indicated that Mehul Choksi faced arrest in Belgium, following a period of stay in Antigua and Barbuda, reflecting the complex and international nature of the legal hurdles the promoters continue to face.
The current warrant issued by the Mumbai court is a procedural escalation intended to compel the appearance of the defendants. As the legal system continues to work through these regulatory complaints, the next steps for the court will involve tracking whether these warrants can be executed or if the defendants will provide a legal response to the ongoing charges of financial irregularities.