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The PMLA court in Mumbai has authorised the monetisation of properties worth ₹2,565.9 crore attached or seized by the Enforcement Directorate (ED) in the Mehul Choksi PNB fraud case. The decision, issued on Tuesday, enables the restitution of assets to Punjab National Bank (PNB) and ICICI Bank, the primary victims of the scam.
As part of this development, over ₹125 crore worth of properties, including flats in Santacruz and industrial units in SEEPZ, Andheri, have already been handed over to the liquidator of Choksi's Gitanjali Gems Ltd. The transfer of remaining assets is underway, as directed by the Prevention of Money Laundering Act (PMLA) court.
The ED and the banks jointly filed an application to expedite asset restitution, allowing banks to monetise the attached properties. The court's order also directs the ED to assist in valuing and auctioning the assets, with proceeds to be deposited as fixed deposits with PNB and ICICI Bank.
This ruling marks another step in the ED's ongoing efforts to recover assets lost in the ₹6,097.63 crore fraud perpetrated by Choksi and his associates.
Also read: FinMin, CBI, public banks discuss ways to expedite bank fraud investigations
The ED's investigation revealed that Choksi, in collusion with PNB officials, fraudulently obtained Letters of Undertaking and defaulted on loans, including a substantial ICICI Bank loan.
Since launching its money-laundering probe in 2018, the ED has seized valuables worth ₹597.75 crore and attached assets valued at ₹1,968.15 crore, including domestic and overseas properties, vehicles, jewellery, and bank accounts. The total assets seized in the case amount to ₹2,565.9 crore.
Choksi, who fled India in January 2018, is believed to be residing in Antigua and Barbuda, where he has contested extradition proceedings. His nephew, Nirav Modi, a co-accused in the case, was arrested in London in 2019 and is facing extradition hearings.
Thus far, six properties worth ₹125 crore have been restored to the Gitanjali Gems Ltd liquidator, including flats in Kheni Tower, Santacruz (valued at ₹27 crore) and industrial units at SEEPZ, Andheri (valued at ₹98.03 crore). Efforts to monetise the remaining assets are ongoing.
PNB shares gained nearly 2% in late trade, reflecting optimism over potential dues recovery in the long-running fraud case. The PSU stock closed at ₹110.35 on December 10, up by 1.52% today.
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As part of this development, over ₹125 crore worth of properties, including flats in Santacruz and industrial units in SEEPZ, Andheri, have already been handed over to the liquidator of Choksi's Gitanjali Gems Ltd. The transfer of remaining assets is underway, as directed by the Prevention of Money Laundering Act (PMLA) court.
The ED and the banks jointly filed an application to expedite asset restitution, allowing banks to monetise the attached properties. The court's order also directs the ED to assist in valuing and auctioning the assets, with proceeds to be deposited as fixed deposits with PNB and ICICI Bank.
This ruling marks another step in the ED's ongoing efforts to recover assets lost in the ₹6,097.63 crore fraud perpetrated by Choksi and his associates.
Also read: FinMin, CBI, public banks discuss ways to expedite bank fraud investigations
The ED's investigation revealed that Choksi, in collusion with PNB officials, fraudulently obtained Letters of Undertaking and defaulted on loans, including a substantial ICICI Bank loan.
Since launching its money-laundering probe in 2018, the ED has seized valuables worth ₹597.75 crore and attached assets valued at ₹1,968.15 crore, including domestic and overseas properties, vehicles, jewellery, and bank accounts. The total assets seized in the case amount to ₹2,565.9 crore.
Choksi, who fled India in January 2018, is believed to be residing in Antigua and Barbuda, where he has contested extradition proceedings. His nephew, Nirav Modi, a co-accused in the case, was arrested in London in 2019 and is facing extradition hearings.
Thus far, six properties worth ₹125 crore have been restored to the Gitanjali Gems Ltd liquidator, including flats in Kheni Tower, Santacruz (valued at ₹27 crore) and industrial units at SEEPZ, Andheri (valued at ₹98.03 crore). Efforts to monetise the remaining assets are ongoing.
PNB shares gained nearly 2% in late trade, reflecting optimism over potential dues recovery in the long-running fraud case. The PSU stock closed at ₹110.35 on December 10, up by 1.52% today.
First Published: Dec 10, 2024 3:54 PM IST
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