The PMLA court in Mumbai has authorised the monetisation of properties worth ₹2,565.9 crore attached or seized by the Enforcement Directorate (ED) in the Mehul Choksi PNB fraud case.
The decision, issued on Tuesday, allows the restitution of assets to Punjab National Bank (PNB) and ICICI Bank, the primary victims of the scam.
As part of this development, properties worth over ₹125 crore, including flats in Santacruz and industrial units in SEEPZ, Andheri, have already been handed over to the liquidator of Choksi's Gitanjali Gems Ltd. The transfer of the remaining assets is underway, as directed by the Prevention of Money Laundering Act (PMLA) court.
The ED and the banks jointly filed an application to expedite asset restitution, enabling the banks to monetise the attached properties. The court's order also directs the ED to assist in valuing and auctioning the assets, with the proceeds to be deposited as fixed deposits with PNB and ICICI Bank.
This ruling marks another step in the ED's ongoing efforts to recover assets lost in the ₹6,097.63 crore fraud perpetrated by Choksi and his associates.
The ED's investigation revealed that Choksi, in collusion with PNB officials, fraudulently obtained Letters of Undertaking and defaulted on loans, including a substantial loan from ICICI Bank.
Since the money-laundering probe began in 2018, the ED has seized valuables worth ₹597.75 crore and attached assets valued at ₹1,968.15 crore, including properties, vehicles, jewellery, and bank accounts both in India and overseas. The total value of assets seized in the case amounts to ₹2,565.9 crore.
Choksi, who fled India in January 2018, is believed to be residing in Antigua and Barbuda, where he is contesting extradition proceedings. His nephew, Nirav Modi, a co-accused in the case, was arrested in London in 2019 and is currently facing extradition hearings.
Thus far, six properties worth ₹125 crore have been restored to the liquidator of Gitanjali Gems Ltd, including flats in Kheni Tower, Santacruz (valued at ₹27 crore), and industrial units in SEEPZ, Andheri (valued at ₹98.03 crore). Efforts to monetise the remaining assets are ongoing.
After this development, Punjab National Bank (PNB) shares rose by nearly 2% towards the end of the trading day, fueled by expectations of recovering dues from the protracted case. The Enforcement Directorate (ED), working with PNB and ICICI Bank, had filed a request to return assets valued at over ₹125 crore to the rightful owners and victims.
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