New Delhi: In a significant step towards recovering assets linked to the multi-crore Punjab National Bank (PNB) fraud, the Enforcement Directorate (ED) has handed over four residential flats in Mumbai, attached in the case involving fugitive businessman Mehul Choksi, to the liquidator for monetisation, the ED said Monday.
The properties, located in Project Tatva, Urja – A Wing on Datthapada Road in Borivali (East), were officially transferred November 21, enabling the liquidation process to move forward for the benefit of victim banks, secured creditors and other legitimate claimants.
According to the ED, this handover is part of its ongoing efforts to ensure restitution of assets in the massive bank fraud case.
With this latest transfer, immovable and movable properties worth approximately Rs 310 crore, spread across Mumbai, Kolkata and Surat, have so far been handed over to the liquidator of Gitanjali Gems Ltd., the flagship company of Choksi’s group.
“Till now, immovable/movable properties located at Mumbai, Kolkata and Surat collectively having a worth of Rs. 310 Crore (approx.) were handed over to the Liquidator of M/s Gitanjali Gems Ltd,” the ED said in its press note.
The money-laundering probe under the Prevention of Money Laundering Act (PMLA) revealed that Choksi, in collusion with associates and Punjab National Bank officials, fraudulently obtained Letters of Undertaking (LoUs) and Foreign Letters of Credit between 2014 and 2017.
These transactions caused a wrongful loss of Rs 6,097.63 crore to PNB. Choksi also defaulted on loans taken from ICICI Bank, adding to the liabilities examined during the investigation.
“He had also taken a loan from ICICI Bank and had defaulted on that loan too,” the ED said.
During the course of the probe, the ED conducted searches at more than 136 locations across India, seizing diamonds, jewellery and other valuables worth Rs 597.75 crore linked to the Gitanjali Group.
In total, assets worth Rs 2,565.90 crore have been seized or attached in connection with the case, and three prosecution complaints have been filed so far.
To accelerate the restitution process, the ED and lending banks jointly approached the Special PMLA Court in Mumbai, seeking permission for the valuation and auction of attached properties. The court allowed the agencies to proceed, directing that sale proceeds be deposited as fixed deposits in PNB and ICICI Bank.
“The Court passed an order stating that ED would facilitate the Banks, Liquidators in different Gitanjali Group of Companies to carry out valuation and auction of the attached or seized properties, and after auction of the said properties, the sale proceeds amounts would be deposited in the PNB/ICICI Bank as FDs,” the ED said.
“Further, the remaining assets are being handed over to the Liquidator/Banks as per the order of the Hon’ble Spl. Court (PMLA),” it added.