Choksi Sold Low Quality Gems at High Price
Mehul Choksi the uncle of diamantaire Nirav Modi, used to sell low quality gems and jewells at exorbitant prices.
Mehul Choksi is the uncle of Nirav Modi. Choksi and his nephew Nirav Modi both scammed the Punjab National Bank for Rs 13,500 crore. He is wanted by the Punjab National Bank and the Enforcement Directorate (ED). The ED recently found that Mehul Choksi duped his customers by selling them low quality gems at extremely high prices. ED found this information in an email between Choksi and his employee in Dubai. In the email his employee said that an aluminum bowl turned red because the gems were staining the bowl. The employee told Choksi that he needs to maintain the quality of his gems. Choksi along with his nephew Nirav Modi was even exporting low quality gems and semi-furnished jewellery. These were then sold at 5 to 10 times the original price in th foreign market.
After Choksi ran away from India, the ED has confiscated many of his assets.These included precious gems and jewellery as well. The ED said they have assets worth Rs 2,500 crore. However most the assets are over priced jewellery and their original value is only a part of what was declared. The ED had seized jewelry from Hyderabad which was declared to be Rs 3,800. However it is really worth Rs 200 crore.