New Delhi, Nov 24, (UNI) The Enforcement Directorate (ED) has handed over four flats in Mumbai’s Borivali-based project, ‘Tattva,’ linked to absconding millionaire Mehul Choksi, to a liquidator.
The properties will be sold, and the proceeds will be returned to the banks and others who complained that their money was not returned by the absconding diamond merchant’s firms.
An ED official stated, “In continuation of the ED’s ongoing efforts for the restitution of assets, the Mumbai Zonal Office has facilitated the handing over of four flats in Project Tatva, Urja – A Wing, Borivali (East), Mumbai. These properties, attached in the Mehul Choksi case (PNB Fraud), have been transferred to a liquidator to proceed with monetization for the benefit of victims, secured creditors, and other legitimate claimants.”
The official added, “So far, immovable and movable properties located in Mumbai, Kolkata, and Surat, with a collective value of Rs 310 crore, have been handed over to the Liquidator of Gitanjali Gems Ltd.”
According to the ED’s investigation, between 2014 and 2017, Choksi conspired with his associates and officials of Punjab National Bank (PNB) to fraudulently obtain Letters of Undertaking and Foreign Letters of Credit.
This resulted in a wrongful loss of Rs 6,097.63 crore to PNB. Choksi had also taken a loan from ICICI Bank, on which he subsequently defaulted.
During the investigation, the ED conducted searches at more than 136 locations across India and seized valuables and jewellery worth Rs 597.75 crore belonging to the Gitanjali Group.
Furthermore, movable and immovable assets worth Rs 1,968.15 crore, including properties in India and overseas, vehicles, bank accounts, factories, and shares, were attached.
In aggregate, assets worth Rs 2,565.90 crore have been attached or seized in this case, and three Prosecution Complaints have been filed. To expedite the restitution of properties to the victim banks, the ED and the banks took proactive steps towards asset monetization.
They agreed on a common stand and filed a joint application in the Special PMLA Court in Mumbai. The Court passed an order directing the ED to facilitate the banks and liquidators of the Gitanjali Group companies in the valuation and auction of the attached properties.
The proceeds from the auction are to be deposited as fixed deposits in PNB and ICICI Bank. The remaining assets are being handed over to the liquidator and banks as per the court’s order.
