Enforcement Directorate Commences Asset Restoration in Mehul Choksi Fraud Case
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New Delhi, Dec 10 (NationPress) The Enforcement Directorate (ED), in partnership with Punjab National Bank (PNB) and ICICI Bank, has commenced the restoration of properties tied to the Mehul Choksi bank fraud case. This action is part of their initiative to ensure that seized and attached assets are returned to their rightful owners and to the victims of money laundering, while also allowing financial institutions to monetize these assets.
The Special PMLA Court in Mumbai has sanctioned the monetization of properties worth Rs 2,565.90 crore that were either attached or seized by the ED during the investigation of the PNB fraud case involving the fugitive diamantaire Mehul Choksi.
Following the court's order, the handover process for these assets has commenced. Properties valued over Rs 125 crore, which include flats in Mumbai and two factories/godowns at SEEPZ Mumbai, have already been transferred to the Liquidator of M/s Gitanjali Gems Ltd., with additional restitution in progress.
The ED's investigation has uncovered that Mehul Choksi, in collusion with accomplices and PNB officials, fraudulently acquired Letters of Undertaking and Foreign Letters of Credit between 2014 and 2017. This scheme led to a staggering loss of Rs 6,097.63 crore for PNB. Furthermore, Choksi defaulted on loans obtained from ICICI Bank.
So far, the ED has executed searches at more than 136 locations throughout India, seizing valuables and jewelry worth Rs 597.75 crore belonging to the Gitanjali Group.
In addition to this, both immovable and movable assets totaling Rs 1,968.15 crore, which encompass properties in India and abroad, vehicles, bank accounts, factories, shares, and jewelry, have been attached. In total, assets with a value of Rs 2,565.90 crore have been seized or attached, and three prosecution complaints have been filed under the Prevention of Money Laundering Act (PMLA).
The ED, along with the victim banks, has jointly approached the special court to hasten the monetization of these assets. The court order dated September 10, 2024, instructed the ED to assist the banks and liquidators of the Gitanjali Group companies in appraising and auctioning the seized or attached properties. The proceeds from these auctions will be deposited as fixed deposits in PNB and ICICI Bank.
As part of this ongoing process, six properties, including flats in Kheni Tower, Santacruz East, Mumbai, valued at Rs 27 crore, and two properties in SEEPZ (Plot No. 61 and Plot No. 16), valued at Rs 98.03 crore, have been restored and transferred to the liquidator. The transfer of the remaining assets is currently in progress according to the court's directives.
