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WATCH: Franchise Owners Duped By Nirav Modi's Uncle Mehul Choksi's Ponzi Fraud Speak Up; Talk About Being Looted And Threatened

Written By Shawan Sen | Mumbai | Published:

Hack:

  • Republic TV has spoken to Gitanjali Gems franchise owners who had invested large sums of money into Mehul Choksi's schemes
  • Instead of the returns they were guaranteed, the franchise owners cite poor service by Gitanjali Gems and threats from Choksi when talk turned to ending the agreement and returning the money
  • From the franchise owners' accounts, the schemes of Gitanjali Gems begins to more closely resemble a high-ticket Ponzi scam

As part of the Alpha Files investigation into the business dealings of the estimated Rs 25,000+ crore fraud accused Nirav Modi and in particular, his uncle Mehul Choksi, Republic TV has spoken to the franchise owners who were allegedly duped by Choksi. 

Speaking to Republic TV's Prema Sridevi and Shawan Sen respectively, the franchise owners, Vaibhav Malvi and Vaibhav Khurania, have exposed the schemes of Gitanjali Gems, of which Choksi is MD, for which they had signed up and invested funds, and what became of those schemes, which in light of their revelations, begin to resemble a high-value Ponzi scam. 

Vaibhav Khurania, who said he had invested Rs 5 crore in securing a franchise of Gitanjali Gems, said the materials (gold and jewellery) would come sporadically and would not be of the requisite quality. Khurania said he had met Mehul Choksi regarding the franchise not running smoothly, seeking an end to the contract. However, rather than returning Khurania's investment, Choksi, citing his connections, allegedly threatened him.

Khurania also elaborated on the aspects of Gitanjali Gems' proposition that enticed him into signing up.

Similarly, Vaibhav Malvi also recounted the story of how he came to becoming a franchise of Gitanjali Gems. Gitanjali contacted him, Malvi said, promising maximum returns on a minimum investment of Rs 1 crore.

Both franchise owners have initiated legal proceedings against Choksi and also mentioned others who had suffered similarly for getting involved with Mehul Choksi's business.

On Monday, as part of the Alpha Files, Republic TV spoke to Santosh Srivastav, former President and MD at Gitanjali Gems who detailed an alleged fake diamond operation run by Choksi and also shed light on the purported round-tripping of diamonds.

Republic TV also spoke to the auditors of PNB, who went on record for the first time to state that they had flagged the fraud undertakings of diamond czars a number of years ago.

Earlier, the Alpha Files have had vastly expanded the size, scope and scale of the Mehul Choksi-Nirav Modi scam and also showed, how despite a court order, the Police in Karnataka went slow on Mehul Choksi.

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