Delhi HC to hear Mehul Choksi's plea seeking quashing of FIR

Punjab National Bank branch in Mumbai

A Punjab National Bank branch in Mumbai | PTI

While billionaire jewellery designer Nirav Modi, the alleged perpetrator of this fraud, is not directly linked to any listed company, his relative and business associate Mehul Choksi's Gitanjali Gems is a listed firm and has been involved in some other cases of suspected market manipulations.

The Delhi High Court will today hear a crucial petition filed by Gitanjali Gems promoter Mehul Choksi, who is now under investigation in the Punjab National Bank scam case, seeking the quashing of an FIR lodged against him for allegedly cheating an engineer's firm in 2016.

The jewellery firm said in a statement to the stock exchanges that two senior management officials - CFO Chandrakant Karkare and non-executive board member Krishnan Sangameswaran - had chose to step down.

Two key personnel of Gitanjali Ltd - its chief compliance officer and its chief financial officer - resigned last week, regulatory filings on Tuesday showed.

With an aim to help investors take an informed decision at the earliest in cases of loan default, Sebi had proposed to mandate listed companies to make immediate disclosure about their loan defaults.

In a letter addressed to Choksi, Warange said she had certain "statutory duties and responsibilities towards the stakeholders of the company since she was in a key managerial position". I have advised the management on the required disclosures to be made.

"There is however no consensus in my opinion on the disclosures to be made and that of the management and in these circumstances, my conscience doesn't permit me to continue with my position", she added.

Karkare in his resignation letter dated February 15, 2018 wrote: "Sir, recently my wife has undergone a major surgery called Hemicolectomy at Lilavati Hospital". The post-operation recovery is not up to the expected level. "This has resulted in restriction in me carrying the responsibilities as CFO, and will be very hard for me in future", he pointed out.

Shares of the bank were trading 1 per cent higher at Rs 1,648.35 on BSE in morning trade.

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