The Enforcement Directorate (ED) has handed over four attached properties in Borivali (East), Mumbai, to the liquidator in connection with the Punjab National Bank (PNB) fraud case. The transfer, facilitated by ED’s Mumbai Zonal Office on November 21, is part of the agency’s ongoing efforts to ensure restitution and restoration of assets for the benefit of victims, secured creditors and other legitimate claimants.
According to the agency, attached movable and immovable assets, worth approximately Rs 310 crore, in Mumbai, Kolkata, and Surat have so far been handed over to the liquidator of Gitanjali Gems Ltd.
The ED’s investigation under the Prevention of Money Laundering Act (PMLA) found that fugitive offender Mehul Choksi, in collusion with his associates and PNB officials, fraudulently obtained letters of undertaking and foreign letters of credit between 2014 and 2017, causing a wrongful loss of Rs 6,097.63 crore to the bank.
Choksi had also defaulted on loans taken from ICICI Bank.
During the probe, the agency conducted searches at more than 136 locations across the country and seized valuables and jewellery worth Rs 597.75 crore belonging to Gitanjali Group. It further attached movable and immovable assets valued at Rs 1,968.15 crore, including properties in India and abroad, vehicles, bank accounts, factory premises, shares of listed companies and jewellery. In total, assets worth Rs 2,565.90 crore were attached or seized, and three prosecution complaints were filed.
To expedite recovery for the victim banks, ED and the lenders jointly moved the special PMLA Court in Mumbai with a consent application. The court allowed the agency to facilitate valuation and auction of attached or seized properties through the respective liquidators of Gitanjali Group companies. As per the order, proceeds from the auctions will be deposited with PNB and ICICI Bank in the form of fixed deposits.
ED said steps are under way to hand over the remaining attached assets to the liquidator and banks in accordance with the special court’s directions.
