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The Enforcement Directorate (ED) on Tuesday (December 10, 2024) said it had started restitution of properties to the rightful owners of assets worth ₹2,565.90 crore as part of a money laundering probe against absconding businessman Mehul Choksi.
The investigation agency’s step was based on an order issued by a Special PMLA Court in Mumbai that directed the agency to monetise properties and assets in connection with Choksi after the court received an alleged fraud case application from Punjab National Bank (PNB) and ICICI Bank.
The agency said, “Based on the application filed by the banks that were supported by the ED, the Special PMLA Court, Mumbai, allowed monetisation of properties amounting to ₹2,565.90 crore attached or seized by the ED, Mumbai in Choksi’s PNB fraud case. In pursuance to the order, the process of handing over of assets has been initiated and properties worth more than ₹125 crore have been handed over to the liquidator of Gitanjali Gems Ltd.”
The handed over properties include six flats in Kheni Tower at Santacruz east in Mumbai worth approximately ₹27 crore and two factories and godowns situated at Santacruz Electronic Export Processing Zone in Mumbai worth ₹98.3 crore. Restitution of the rest of the properties was also in progress, the agency said.
Letters of Credit
Investigation under the Prevention of Money Laundering Act (PMLA) in Choksi case revealed that he connived with his associates and PNB officials during the period from 2014 to 2017 and fraudulently issued Letters of Undertaking and Foreign Letters of Credit from PNB resulting in a wrongful loss of ₹6,097.63 crore to PNB. He had also taken a loan from ICICI Bank and had defaulted on that loan too.
During the investigation, the ED conducted searches at more than 136 locations all over India and seized valuables such as jewellery worth ₹597.75 crore pertaining to Gitanjali Group of Choksi. “Further, immovable and movable assets worth ₹1968.15 crore of Choksi’s Gitanjali Group were attached, which included immovable properties in India and overseas, such as, vehicles, bank accounts, factory, shares of listed companies, jewellery, among others. In aggregate, assets worth ₹2,565.90 crore were attached or seized in this case and three prosecution complaints have been filed,” an ED official said.
To speed up the process of restitution of properties to the victim banks, the ED along with the banks took proactive steps towards monetisation of assets and they agreed to take a common stand and moved the Special PMLA Court, Mumbai for filing a Joint Consent Application. On September 10, 2024, the court passed the order on the joint application that said the ED would facilitate the banks, liquidators in different Gitanjali Group of companies to carry out valuation and auction of the attached and seized properties. After auction of the said properties, the sale proceed amounts would be deposited in PNB and ICICI Bank as Fixed Deposits.
Published – December 10, 2024 10:36 pm IST
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PNB scam: special court asks ED to monetise assets worth ₹2,565.90 crore
