The bank is seeking Rs 608 crore from the company, stating it was a financial creditor.
The National Company Law Tribunal has admitted ICICI Bank's plea to begin insolvency proceedings against Mehul Choksi-owned Gitanjali Gems. The bank is seeking Rs 608 crore, stating it was a financial creditor to the Gitanjali Gems.
"We are of the view that the company is fit and proper to be referred to CIRP (Corporate Insolvency Resolution Professional). The investigation agencies including SFIO and others can work with the RP," the NCLT judge said while suggesting Vijay Garg be appointed resolution professional.
The NCLT also said agencies such as the Serious Fraud Investigation Office (SFIO) can also work with the resolution professional on the same.
ICICI Bank said that it was part of a consortium of banks that provided loans to the company to the tune of Rs 5,980 crore. The nature of the loans being working capital and External Commercial Borrowings (ECB).
ICICI Bank said the consortium has given verbal consent to go ahead with the insolvency proceedings. Stocks, raw material, movable and immovable assets, finished goods and trade receivables can be used to carry out the proceedings.
All the properties which are attached under criminal proceedings by investigating agencies will come to NCLT to ascertain the distribution of the assets.
Gitanjali Gems is owned by Mehul Choski, prime accused in a $2 billion (about Rs 13,000 crore) alleged bank fraud that also involved his nephew Nirav Modi.