National desk
7 June
Sandeep Dhand
Journalist and Research Analysist
In a major development related to the Gitanjali Gems insider trading case, financial authorities have ordered the freezing of bank accounts, shares, and mutual fund holdings connected to the company’s former top leadership. This action follows violations of insider trading rules in the company’s shares.
The decision was taken after a recent notice was issued on May 15, demanding settlement of dues within 15 days. The notice clearly stated that if the payment was not made within the given time frame, steps would be taken to seize assets, including financial accounts.
The individual in question held a key position as Chairman and Managing Director of Gitanjali Gems and was also part of its promoter group. He has also been linked to a larger financial fraud case involving a major public sector bank. Both he and his business associate are alleged to have defrauded the bank of over ₹14,000 crore.
The scam, which came to light in early 2018, shook the Indian banking system and led to major investigations across various agencies. Following the exposure of the scam, both individuals fled the country, triggering efforts to trace their financial trails and recover public money.
This recent asset freeze is seen as part of the ongoing efforts to tighten legal action and recover dues from those involved in corporate fraud and financial irregularities. Investigative agencies continue to track hidden assets and financial transactions linked to such high-profile economic offenses.
Authorities have reiterated their commitment to enforcing strict penalties on violations of trading regulations and corporate governance norms. More such actions are expected as the investigation progresses and legal proceedings unfold in the coming months.