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NCLT Accepts CIRP Against Gitanjali Gems Filed By ICICI Bank


The National Company Law Tribunal (NCLT) has admitted the insolvency petition filed by ICICI Bank Ltd. against Gitanjali Gems Ltd promotor Mehul Choksi.

This is the first insolvency petition filed by the bank since a probe was launched for over US$ 2 billion Punjab National Bank (PNB) fraud by Choksi and his nephew Nirav Modi which is being investigated by the government agencies against for their alleged involvement in the fraud.

The ICICI Bank attorney, Sagar Divekar, briefed the National Company Law Tribunal (NCLT)’s Mumbai bench on Wednesday, i.e. 03/10/2018 that Gitanjali Gems has defaulted on dues of about Rs 608 crores.

Divekar said, “These dues were in the form of working capital loans and external commercial borrowings (ECBs),” and added that the company owes over Rs 5,980 crores to a consortium of banks led by ICICI.

Divekar claimed in the court, “Once the Interim Resolution Professional (IRP) takes over the company, other operational creditors who have approached the tribunal to recover their dues can also submit their dues to the RP to be included in insolvency process”.

NCLT presiding officer M. K. Shrawat said, “The tribunal is of the view that the company is fit and proper to be referred to Corporate Insolvency Resolution Process (CIRP) and the investigation agencies including that of Serious Fraud Investigation Office, Enforcement Directorate and others can work with the RP with regards to recovery of assets of the company.”

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