The 180 days since the resolution process began ended on April 6. Since the extension is not approved by the lenders, the next logical step is to go for liquidation," the company said in a BSE filing.
In the meantime, Securities and Exchange Board of India (SEBI) is also looking into the matter and is also seeking help from the Central Board of Direct Taxes to ensure the assets of the prime accused and other related parties.
Mehul Choksi-run Gitanjali Gems stares at its conclusion as the company has headed towards liquidation after the committee of creditors decided to end the resolution process citing time over-run. The company owes ₹12,550 crore to 31 financial creditors.
Choksi along with his nephew Nirav Modi, was involved in the infamous ₹14,000 crore PNB scam. The two are absconding from the country after committing one of the biggest financial frauds, which was exposed in February 2018. Currently, they are facing extradition from Antigua and Britain, respectively.
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Meanwhile, Gitanjali Gems' lenders have rejected a resolution proposal and have voted for liquidation, citing time over-run beyond the 180 days. The committee of creditors had met on March 28, and with a majority of 54.14 per cent, rejected a plea to continue with the resolution process and decided to go in for liquidation instead.