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The Enforcement Directorate (ED), Mumbai, has successfully handed over properties worth more than Rs 125 crore to the liquidator of Gitanjali Gems Ltd. These properties have been returned to their rightful owners and victims of the money laundering case against absconding businessman Mehul Choksi in the Punjab National Bank (PNB) scam.
In a joint effort with PNB and ICICI Bank, ED sought restitution of assets to monetise attached or seized properties, allowing financial institutions to recover losses. Following an application supported by the ED, the Special PMLA Court in Mumbai approved the monetisation of properties worth Rs 2,565.90 crore linked to Mehul Choksi.
PROPERTIES HANDED OVER
As per the court’s order, ED initiated the transfer of assets, starting with properties worth Rs 125 crore. This includes flats in Mumbai and factories/godowns in SEEPZ Mumbai. Restitution of additional properties is underway.
THE PNB SCAM
Investigations revealed that between 2014 and 2017, Mehul Choksi, in collusion with associates and PNB officials, fraudulently obtained Letters of Undertaking and Foreign Letters of Credit from PNB, resulting in a Rs 6,097.63 crore loss. He also defaulted on loans taken from ICICI Bank.
ED’s extensive probe involved searches across 136 locations in India, seizing valuables worth Rs 597.75 crore and attaching assets valued at Rs 1,968.15 crore. These include properties in India and overseas, vehicles, bank accounts, factories, shares, and jewelry.
PROGRESS IN ASSET RECOVERY
The court directed ED to assist banks and liquidators in valuating and auctioning the attached properties. So far, six properties, including flats worth Rs 27 crore and two factory plots at SEEPZ worth Rs 98.03 crore, have been handed over to the liquidator of Gitanjali Gems Ltd.
The restitution process continues as remaining assets are being transferred to liquidators and banks, providing a significant recovery in the high-profile fraud case.
