A PMLA court in Mumbai has approved the auction of assets valued at Rs 2,565.9 crore linked to fugitive diamantaire Mehul Choksi, which were seized by the Enforcement Directorate (ED) in 2018 in connection to allegations of money laundering related to the Punjab National Bank (PNB) scam.
Following a joint application filed by PNB and ICICI Bank in cooperation with the ED to facilitate the restitution of the seized assets to their rightful owners, the court has authorized the monetization process. Assets worth over Rs 125 crore have already been transferred for auction, including prime properties in Mumbai such as flats and two factories in SEEPZ, Andheri East. These assets are currently being managed by the liquidator appointed for Choksi’s Gitanjali Gems Ltd.
The Enforcement Directorate (ED), along with PNB and ICICI Bank, has filed an application for the restitution of assets totaling over Rs 125 crore to the rightful owners and victims.
According to a recent post on the Enforcement Directorate’s social media platform X on December 10, the Hon’ble Special Court (PMLA), Mumbai has authorized the “monetisation of properties” valued at Rs 2565.90 Crore, which were attached or seized by the ED, Mumbai in the Mehul Choksi case (PNB fraud case).
The initial set of assets up for auction includes residences in Kheni Tower, Santacruz, valued at around Rs 27 crore, and two properties in SEEPZ, Andheri East, estimated at Rs 98.03 crore. The designated liquidator will oversee the management of these assets in accordance with the court’s directive. The ongoing transfer of additional assets will proceed in line with the instructions outlined in the Prevention of Money Laundering Act (PMLA).
The Mumbai branch of the Enforcement Directorate (ED) has effectively transferred assets exceeding Rs 125 crore to the liquidator of Gitanjali Gems Ltd. These assets have been restored to their legitimate owners and individuals affected by the money laundering case involving fugitive businessman Mehul Choksi in the Punjab National Bank (PNB) scandal, India Today reported.
Choksi, along with his nephew Nirav Modi, has been implicated in the Rs 14,000 crore fraud at Punjab National Bank and faces charges of cheating, corruption, and money laundering, among other offenses. The Enforcement Directorate’s charge sheet identifies Choksi as the orchestrator of an organized scheme to deceive customers and lenders in India, Dubai, and the US.
Properties handed over
Pursuant to the court’s directive, the Enforcement Directorate (ED) has initiated the transfer of assets. The process began with properties valued at Rs 125 crore, including flats in Mumbai and factories/godowns in SEEPZ Mumbai. Efforts to recover additional properties are currently in progress.
During investigations spanning from 2014 to 2017, Mehul Choksi, in collaboration with accomplices and PNB officials, is found to have fraudulently obtained Letters of Undertaking and Foreign Letters of Credit from PNB, resulting in a loss of Rs 6,097.63 crore. Moreover, he defaulted on loans borrowed from ICICI Bank.
ED’s thorough investigation encompassed searches in 136 locations throughout India. During these searches, assets worth Rs 597.75 crore were seized, and properties valued at Rs 1,968.15 crore were attached. These assets include properties in India and overseas, vehicles, bank accounts, factories, shares, and jewelry.
(With India Today inputs)