Did the ED Hand Over Four Mumbai Flats Linked to Mehul Choksi Case for Monetisation?
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Synopsis
In a crucial development, the Enforcement Directorate has transferred four flats in Mumbai linked to the Mehul Choksi case for asset monetisation. This step is part of ongoing efforts to recover losses from the Punjab National Bank fraud, which has impacted several banks and creditors. The ED aims to expedite the restitution process for affected parties.
Key Takeaways
- The ED has handed over four Mumbai flats linked to Mehul Choksi to a liquidator.
- This action is part of efforts to recover assets from the Punjab National Bank fraud case.
- Properties valued at Rs 310 crore have been transferred so far.
- Choksi's fraudulent activities resulted in a loss of Rs 6,097.63 crore to PNB.
- Over 136 locations were searched, leading to significant asset seizures.
New Delhi, Nov 24 (NationPress) In a pivotal move aimed at asset recovery related to the extensive Punjab National Bank (PNB) fraud, the Enforcement Directorate (ED) has transferred four residential flats located in Mumbai—attached in the case of fugitive businessman Mehul Choksi—to the liquidator for monetisation, as reported by the ED on Monday.
The properties, situated in Project Tatva, Urja – A Wing on Datthapada Road in Borivali (East), were officially handed over on November 21, facilitating the liquidation process for the benefit of victim banks, secured creditors, and other rightful claimants.
The ED noted that this transfer is an integral part of its ongoing initiative to ensure the restitution of assets in this significant bank fraud case.
With this recent handover, the total value of immovable and movable properties transferred so far amounts to approximately Rs 310 crore, encompassing locations in Mumbai, Kolkata, and Surat, all directed to the liquidator of Gitanjali Gems Ltd., the flagship entity of Choksi’s conglomerate.
According to the ED, “To date, properties valued collectively at around Rs. 310 Crore have been transferred to the Liquidator of M/s Gitanjali Gems Ltd,” as stated in its press release.
The investigation into money laundering under the Prevention of Money Laundering Act (PMLA) has revealed that Choksi, in collusion with associates and officials from Punjab National Bank, fraudulently secured Letters of Undertaking (LoUs) and Foreign Letters of Credit from 2014 to 2017.
These fraudulent transactions inflicted a wrongful loss of Rs 6,097.63 crore to PNB, with Choksi also defaulting on loans from ICICI Bank, which were examined during the investigation.
“He had also taken out a loan from ICICI Bank, on which he defaulted as well,” the ED remarked.
Throughout the investigation, the ED has executed searches at over 136 locations across India, seizing diamonds, jewelry, and other valuables linked to the Gitanjali Group, valued at Rs 597.75 crore.
In total, assets worth Rs 2,565.90 crore have been seized or attached in relation to this case, with three prosecution complaints filed so far.
To expedite the restitution process, the ED and lending banks jointly approached the Special PMLA Court in Mumbai, seeking approval for the valuation and auction of attached properties. The court granted permission, directing that the proceeds from sales be deposited as fixed deposits in PNB and ICICI Bank.
The ED stated, “The Court mandated that the ED would assist the Banks and Liquidators in various Gitanjali Group Companies to conduct valuations and auctions of the attached or seized properties, and post-auction, the proceeds would be deposited in PNB/ICICI Bank as fixed deposits.”
“Furthermore, the remaining assets are being transferred to the Liquidator and Banks per the order of the Hon’ble Special Court (PMLA),” it concluded.
Point of View
I view this development as a critical stride towards justice for the victims of the PNB fraud. The ED's actions reflect a commitment to recovering lost assets and addressing the fallout from this extensive financial crime. It is essential that the legal process continues to uphold accountability and transparency.
NationPress
24/11/2025
Frequently Asked Questions
What are the flats linked to Mehul Choksi?
The flats are four residential properties in Mumbai that were attached by the Enforcement Directorate as part of the investigation into the Punjab National Bank fraud case involving Mehul Choksi.
How much are the properties worth?
The total value of the immovable and movable properties handed over to the liquidator amounts to approximately Rs 310 crore.
What was the outcome of the investigation?
The investigation revealed that Mehul Choksi fraudulently obtained Letters of Undertaking and caused a wrongful loss of Rs 6,097.63 crore to Punjab National Bank.
What steps are being taken for restitution?
The Enforcement Directorate and lending banks have approached the Special PMLA Court to facilitate the valuation and auction of the attached properties to expedite the restitution process.
How many properties have been seized in total?
In total, assets worth Rs 2,565.90 crore have been seized or attached in connection with this case.
