ED Hands over 4 Flats Linked to Mehul Choksi for Monetisation in PNB Fraud Case

Moneylife Digital Team 25 November 2025

Economy & Nation

The directorate of enforcement (ED) has handed over four flats linked to fugitive businessman Mehul Choksi in Mumbai’s Borivali (East) to the liquidator of Gitanjali Gems Ltd, marking another step in the agency’s ongoing restitution efforts in the Punjab National Bank (PNB) fraud case. The flats, located in Project Tatva, Urja – A Wing on Datthapada Road, were transferred on 21 November 2025 to enable monetisation for the benefit of victims, secured creditors and other legitimate claimants.

ED says that, with this latest handover, immovable and movable assets worth around ₹310 crore tied to Gitanjali Gems and Mr Choksi have now been transferred to the company’s liquidator. These assets are spread across Mumbai, Kolkata and Surat.

According to the agency, its investigation under the Prevention of Money-Laundering Act (PMLA) found that Mr Choksi colluded with associates and PNB officials between 2014 and 2017 to fraudulently obtain Letters of undertaking and foreign letters of credit. This resulted in a wrongful loss of ₹6,097.63 crore to PNB. The businessman had also defaulted on loans taken from ICICI Bank, ED noted.

During the probe, the agency carried out searches at more than 136 locations across India, seizing jewellery and valuables worth ₹597.75 crore belonging to the Gitanjali group. It subsequently attached immovable and movable assets worth ₹1,968.15 crore, including properties in India and overseas, vehicles, bank accounts, a factory, shares of listed entities and jewellery. In total, assets worth ₹2,565.90 crore have been attached or seized in the case, and three prosecution complaints have been filed.

To speed up restitution, ED says it worked with victim banks to monetise seized assets by taking a joint stand before the special PMLA court in Mumbai. The court permitted ED to facilitate the valuation and auction of attached properties by banks and liquidators of different Gitanjali group companies. Under the court’s direction, proceeds from future auctions will be deposited in PNB and ICICI Bank as fixed deposits.

The agency added that remaining assets are being handed over to the liquidator or concerned banks in line with the special court’s orders, as efforts to recover dues in the multi-crore fraud continue.

In December last year, a special PMLA court in Mumbai allowed the monetisation of properties worth ₹2,565.90 crore attached or seized by ED in Mr Choksi's PNB fraud case.

"In pursuance of the order, the process of handing over of assets has been initiated, and properties worth more than ₹125 crore have been handed over to the liquidator of Gitanjali Gems Ltd. The handed-over properties include flats situated at Mumbai and two factories and godowns situated at SEEPZ in Mumbai. Restitution of rest of the properties is also in progress," ED says in a release.

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