Special PMLA Court Allows Monetisation of Mehul Choksi's Properties Worth Rs2,565.90 Crore
Moneylife Digital Team 10 December 2024
A special Prevention of Money Laundering Act (PMLA) court in Mumbai allowed the monetisation of properties worth Rs2,565.90 crore attached or seized by the directorate of enforcement (ED) in Mehul Choksi's Punjab National Bank (PNB) fraud case. 
 
"In pursuance to the order, the process of handing over of assets has been initiated and properties worth more than Rs125 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.
 
 
The agency says it put a concerted effort in collaboration with PNB and ICICI Bank who are victims of the bank fraud and filed an application for restitution of assets in this case.
 
Investigation under PMLA in the case of Mr Choksi revealed that he conspired with his associates and officials of PNB from 2014 to 2017 and fraudulently got issued letters of undertaking (LoU) and foreign letters of credit, resulting in wrongful loss of Rs6,097.63 crore to PNB. He had also taken a loan from ICICI Bank and defaulted on that loan.
 
During the investigation, ED conducted searches at more than 136 locations all over India and seized valuables and jewellery worth Rs597.75 crore pertaining to the Gitanjali group of Mehul Choksi. Further, ED says immovable and movable assets worth Rs1,968.15 crore of Mehul Choksi and Gitanjali group were attached which included immovable properties in India and overseas, vehicles, bank accounts, factory, shares of listed companies, jewellery, among others. In aggregate, assets worth Rs2,565.90 crore were attached or seized in this case, and the agency has filed three prosecution complaints.
 
To expedite the process of restitution of properties to the victim banks, ED says it, along with the lenders, took proactive steps towards monetisation of assets. ED and the lenders agreed to take a common stand and moved the special PMLA court in Mumbai to file a joint consent application. 
 
The special PMLA court passed the order on 10 September 2024 on the joint application ordering ED to facilitate PNB and ICICI Bank, liquidators in different Gitanjali group of companies to carry out valuation and auction of the attached or seized properties and after auction of these properties, deposit the sale proceed amounts in PNB and ICICI Bank as fixed deposits (FDs).
 
According to ED, until now, six properties, including flats situated at Kheni Tower Santacruz, East Mumbai, having collectively worth of around Rs27 crore and two more properties land & building at Plot No-61 and Plot No-16, in SEEPZ valued at about Rs98.03 crore were restored and handed over to the liquidator of Gitanjali Gems. The remaining assets are being handed over to the liquidator and banks as per the order of the special PMLA court, it added.
 
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