Mehul Choksi and Nirav Modi have had restraining orders issued for them by the National Company Law Tribunal. Also, 60-dd entities have been issued comprising of individuals, companies, and liability partnership firms by selling off their assets so that the government can get back all the funds which were drawn off them in the PNB fraud of Rs. 12,600 Crore. A public announcement by the corporate affairs ministry was made about the ex-parte order being passed on a petition filed by the ministry under the sections of the Companies Act, 2013. The ministry has also moved the petition under the provision of section 221 and section 222.
Apart from Nirav Modi and Mehul Choksi, the restraining order has been passed against 64 other entities including their relatives and other companies including Gilli India, Gitanjali Gems, Firestar Diamond figure and Nakshatra Brands. Other partnership firms including Stellar Diamond and Solar Exports have been included on the list as well. The matter has been posted by the NCLT for further hearing on 26th March when all the concerned entities have been asked to be present before the tribunal. In case the entities do not appear on that day, the matter will be heard ex-parte as was mentioned in the announcement.
The matter is under the supervision of the corporate affairs ministry apart from the Serious Fraud Investigation Office and the Enforcement Directorate. The SFIO has been ordered by the ministry to investigate 110 companies including some of the listed ones and about 10 LLPs which are linked to Modi and Choksi. The fraud of Rs. 12,600 Crore is believed to have taken place via fraudulent letters of undertaking with the help of some PNB employees who are also being investigated in the case. Mehta and a former PNB chief, Usha Ananthasubramanian have been questioned by the CBI as part of the mega fraud connection.