Gitanjali Chief Tells Staff to Find New Jobs

RAPAPORT... Gitanjali Gems managing director Mehul Choksi has told the company's employees to look for another job, as asset seizures have made it impossible to pay salaries, The Times of India reported.Indian authorities are investigating Choksi (pictured) and his nephew,fellow jewelry tycoon Nirav Modi, after Punjab National Bank claimed the pairdefrauded it of $1.8 billion. The executives colluded with a bank official toobtain unauthorized loans, according to the state lender. "I will face my destiny, and I know I have done nothingwrong," Choksi said in a letter to Gitanjali staff, which The Times of India reported on Saturday. He noted a "situation of fear and injustice"affecting him and his firm, and expressed his "helplessness" to pay outstandingsalaries, as investigators have seized his bank accounts and other assets, thereport continued. The jeweler's 3,500 workers will get their money when Choksi proves his innocence and the situation returns to normal, the Mumbai-basednewspaper quoted him as saying. "I am facing a lot of problems due to the manner in whichthe multiple investigative agencies [and] government agencies have started tocreate...havoc, hell-bent upon stopping the operations," he added in the letter.He fears for his and his family's safety due to unfair investigations and mediacoverage, he continued. Choksi's lawyer, Sanjay Abbot, who released the letter,has "no idea" where his client is, according to the report. Abbot wasunavailable for comment to Rapaport News on Sunday. India's Enforcement Directorate is investigating about 144companies associated with Choksi and Modi to assess whether the pair used anyof those firms to launder money, The Times of India reported the sameday.The agency also froze a bank account and corporate sharesbelonging to Modi, seized hundreds of luxury watches from a warehouse connectedto him, and started inspecting other expensive items at four apartments of hisin Mumbai, the report said. Gitanjali's shares fell 34% last week, and have slumped morethan 60% since the scandal broke two weeks ago.