A special court in Mumbai has allowed the auction of 13 properties belonging to Gitanjali Gems Limited, a company owned by fugitive diamond trader Mehul Choksi, who is the main accused in the Punjab National Bank (PNB) loan fraud case.
Court’s Decision on Property Auction
On Thursday, Judge S M Menjoge, who presides over cases under the Prevention of Money Laundering Act (PMLA), ruled in favor of the official liquidator’s plea to auction these properties. The judge stated that if the properties remain idle without maintenance, their value would decline over time.
The 13 properties set to be auctioned include:
- Seven flats in Kheni Tower, Santacruz, Mumbai
- A commercial unit in Bharat Diamond Bourse, Mumbai
- Four office units at Diamond Park in Surat, Gujarat
- One shop in Surat, Gujarat
Last week, the liquidator had requested permission to assess the value of these properties, which are not secured assets, and later sell them through an auction process.
ED and Court’s Instructions on Sale Proceeds
The Enforcement Directorate (ED), which is investigating the case, had no objection to the plea. Following this, the court allowed the valuation process and approved the auction of the properties held by Gitanjali Gems Ltd.
The court further directed that the sale proceeds should be deposited in fixed deposits (FDs) with ICICI Bank in favor of the court. This ensures that the funds remain secure until further legal proceedings are completed.
Mehul Choksi’s Whereabouts and Health Condition
Mehul Choksi, who fled India in 2018, has been residing in Antigua. Recently, his lawyer informed the court that Choksi is suspected to be suffering from cancer and is undergoing treatment in Belgium.
Choksi, along with his nephew Nirav Modi, their family members, employees, and certain PNB officials, was booked by the ED and the Central Bureau of Investigation (CBI) in 2018 for their alleged role in the PNB scam.
Background of the PNB Loan Fraud Case
According to investigating agencies, Choksi and his firm Gitanjali Gems fraudulently obtained Letters of Undertaking (LoUs) and Foreign Letters of Credit (FLCs) from PNB’s Brady House branch in Mumbai. They allegedly did this in connivance with certain bank officials, bypassing prescribed banking procedures, and thereby defrauding the bank of thousands of crores.
The Enforcement Directorate (ED) has already filed three charge sheets against Choksi. In 2019, the agency informed the Bombay High Court that he is a fugitive and absconder.
This auction of Gitanjali Gems’ properties is seen as an important step toward recovering the defrauded money and ensuring justice in one of India’s biggest banking scams.
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