PC Jeweller, a Delhi-based company, has been involved in legal proceedings with the State Bank of India and other lenders in a consortium after defaulting on loans totalling INR 3,466 crore. The largest lenders to the firm are SBI, Union Bank of India, Punjab National Bank and Indian Bank. The lenders have issued loan recall notices to PC Jeweller as a result. The case is currently ongoing, and there is no clarity on the outcome. PC Jeweller has a history of controversies, including a case of insider trading involving the founder of PCJ and his family members in 2018. In April 2022, the Supreme Court overturned the Securities and Exchange Board of India and SAT orders, which led to SEBI petitioning the Supreme Court for a review in September 2022.

PC Jeweller has also experienced a significant decline in its stock market value, which has led to the company considering buying back some of its own shares. The decline in value has been attributed to a lack of transparency and poor disclosure practices, which were triggered by the gift of shares to family members of one of its promoters, Padam Chand Gupta, through off-market transactions. The company has also been linked to Mumbai-based financial and technology company Vakrangee, which is currently under investigation by the Securities and Exchange Board of India for alleged market manipulation and poor corporate governance practices. The recent events at PC Jeweller have not helped the confidence in India's gems and jewellery sector, which has already been hit by the banking fraud involving jewellers Nirav Modi and Mehul Choksi.