ED announced that four Mumbai flats linked to Choksi have been transferred for liquidation.

In a move that could potentially aid in recovering assets related to the massive Punjab National Bank fraud, the Enforcement Directorate announced on Monday that it has handed over four residential flats in Mumbai to the liquidator for monetization. These properties, located in Project Tatva, Urja - A Wing on Datthapada Road in Borivali, have been officially transferred on November 21, allowing 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 a part of their ongoing efforts to ensure that the assets involved in the bank fraud case are restored. With this latest transfer, assets worth approximately Rs 310 crore, both movable and immovable, situated in Mumbai, Kolkata, and Surat, have been handed over to the liquidator of Gitanjali Gems Ltd., the main company of fugitive businessman Mehul Choksi's group.

The press note released by the ED stated, "Till now, immovable/movable properties located at Mumbai, Kolkata, and Surat collectively having a worth of Rs. 310 Crore were handed over to the Liquidator of M/s Gitanjali Gems Ltd." The probe conducted under the Prevention of Money Laundering Act revealed that Choksi, along with his associates and Punjab National Bank officials, had fraudulently obtained Letters of Undertaking (LoUs) and Foreign Letters of Credit (FLCs) between 2014 and 2017, causing 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.

The ED also mentioned that during the course of the probe, they had conducted searches at more than 136 locations across India, seizing diamonds, jewelry, 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 speed up the process of restitution, the ED and lending banks jointly approached the Special PMLA Court in Mumbai, seeking permission for the valuation and auction of the attached properties. The court granted permission, with the condition that the sale proceeds be deposited as fixed deposits in PNB and ICICI Bank. The ED stated, "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."

Furthermore, the ED added that the remaining assets will be handed over to the liquidator and banks as per the order of the Hon'ble Special Court. This move is expected to aid in the process of recovering the defrauded funds and provide some relief to the affected banks and creditors.

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