NCLT Orders Wind up Nakshatra World, a Mehul Choksi Companies

The Mumbai chapter of the National Company Law Tribunal (NCLT) ordered the liquidation of Nakshatra World, a subsidiary of Gitanjali Gems, one of the group companies promoted by fugitive businessman Mehul Choksi, the Economic Times of India reported. The ruling came on an insolvency petition ICICI Bank filed around two years ago against the company, which was also allegedly involved in a money laundering case reported at the Punjab National Bank. The court appointed Santanu Ray, a partner from Delhi-based AAA Insolvency Professionals LLP as the liquidator. “In view of the decision of the CoC, we are inclined… to initiate liquidation process against the Corporate Debtor,” the dedicated insolvency court said in an order released on Sunday. “Accordingly, the Adjudicating Authority Orders for initiation of Liquidation of the Corporate Debtor.” Nakshatra World, a jewellery design distribution firm, was going through an insolvency resolution process since January 2019. However, no resolution could take place as all the assets were attached by the Enforcement Directorate under the Prevention of Money Laundering Act. Two other group companies including Gitanjali Gems and Nakshatra Brands are also pending with the same bench as the Committee of Creditors has filed applications for liquidating them. Read more.