 "Mehul Choksi's Rs 2,565.9 crore properties set for auction after court nod")
A special court in Mumbai has granted permission for the auction of assets worth Rs 2,565.9 crore linked to fugitive diamantaire Mehul Choksi. These properties, seized by the Enforcement Directorate (ED) in 2018, are connected to Choksi’s alleged involvement in money laundering related to the Punjab National Bank (PNB) scam.
The court's decision comes after a joint application was filed by the PNB and ICICI Bank with the support of the ED to expedite the restitution of these seized assets to the rightful owners.
According to the court’s directive, the monetisation process has already begun, with assets valued at over Rs 125 crore now being transferred for auction. Among these properties are several prime assets in Mumbai, including flats and two factories in SEEPZ, Andheri East. These assets are now under the control of the liquidator appointed for Choksi’s Gitanjali Gems Ltd.
Key assets set for auction
The first batch of assets to be auctioned includes flats in Kheni Tower, Santacruz, worth approximately Rs 27 crore, as well as two properties in SEEPZ, Andheri East, valued at Rs 98.03 crore. The appointed liquidator will now manage these properties as part of the court’s order. The ongoing process of transferring additional assets is expected to continue as per the instructions under the Prevention of Money Laundering Act (PMLA).
The case against Mehul Choksi
Mehul Choksi, who is in Antigua and Barbuda, fled India in January 2018, just before the PNB fraud was uncovered. Choksi is alleged to have played a central role in the massive PNB fraud, which led to a loss of over Rs 6,097 crore for the public sector bank.
In addition to the PNB fraud, Choksi is also alleged to have defaulted on a loan from ICICI Bank, further complicating the legal case against him.
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The Indian government has sought his extradition, but Choksi is contesting this in the local courts of Antigua and Barbuda, delaying his return to India where he faces serious charges of money laundering and financial fraud.
The ED’s investigation into Choksi's role in the PNB fraud began in 2018, following a case filed by the Central Bureau of Investigation (CBI). This extensive probe has included over 136 search operations across India, leading to the seizure of valuable assets and crucial evidence.
Efforts to expedite asset restitution
The recent court ruling follows a joint effort by the ED and the victim banks, PNB and ICICI, to accelerate the process of asset restitution. The Special PMLA Court has directed the ED to work closely with liquidators and banks to evaluate and auction the seized assets. Proceeds from these auctions will be deposited into fixed deposits with PNB and ICICI Bank, enabling the victims of the fraud to recover a portion of their losses.
As part of its ongoing efforts, the ED has seized assets worth Rs 2,565.9 crore linked to Choksi, which include immovable and movable assets, vehicles, factory equipment, shares, and jewellery. The ED has also confiscated jewellery and valuables worth Rs 597.75 crore from Choksi’s Gitanjali Group of companies. These seized assets, both in India and overseas, are crucial in the agency’s strategy to recover funds linked to financial crimes and money laundering. (With agency inputs)