Tribunal allows banks to recover loans by selling Jatin Mehta's assets

A Delhi-based tribunal under the Prevention of Money Laundering Act allowed banks to sell the collateral assets to recover their loans of Rs 40 bn

A tribunal has allowed a consortium of lenders, led by Standard Chartered Bank, to sell the properties it took as collateral from companies promoted by fugitive Jatin R Mehta and others. 

These properties, owned by Winsome Diamonds & Jewellery, were attached by the Enforcement Directorate (ED), which claimed that these were from the proceeds from money laundering. As a result, banks could not sell these and recover their dues. 

A Delhi-based appellate tribunal under the Prevention of Money Laundering Act dismissed the attachment made by the ED and allowed banks to sell them to recover their loans to the tune of Rs