The Enforcement Directorate (ED) has initiated the process to return assets worth over Rs 125 crore to their rightful owners to the victims of the money laundering case involved in billionaire Mehul Choksi’s Punjab National Bank (PNB) fraud case.
The central agency initiated the process after the special (PMLA) court, Mumbai, in September 2024 allowed the “monetization of assets” to attach or seize Rs 2565.90 crore in the case.
The agency said on Tuesday that a concerted effort was made by the ED in collaboration with PNB and ICICI Bank (victims), to utilize the productive assets and enable financial institutions to monetize the assets attached or seized (by the ED). Bank fraud) and Mehul Choksi cases filed for return of property.
Based on the application filed by the banks (supported by the ED), the Special PMLA Court, Mumbai allowed the “monetization of assets” of Rs 2565.90 crore attached or seized by the ED.
The court ordered that the ED would assist the banks and liquidators in various companies under the Gitanjali group to assess and auction the attached or seized assets and after the auction of the said assets, the sale proceeds would be deposited with PNB/ICICI Bank. Fixed Deposit.
According to the said order, the process of transfer of property has been started and the property worth more than Rs.125 crore has been handed over to the liquidator of M/s Gitanjali Gems Ltd. The seized property includes a flat in Mumbai and two factories. / godowns located at SEEPZ Mumbai, ED said in a statement. The rest of the land is being returned.
An investigation under PMLA in the case of Mehul Choksi revealed that he along with his associates and bank officials of Punjab National Bank (PNB) fraudulently issued letters of undertaking and foreign loan from PNB during 2014 to 2017. 6097.63 crore wrongful loss to PNB. He also took a loan from ICICI Bank and repaid that loan.
During the investigation, the ED searched over 136 locations across India and seized valuables/jewellery worth Rs 597.75 crore belonging to the Gitanjali group.
1968.15 crore of immovable/movable assets of the Mehul Choksi/Gitanjali group were attached including immovable properties in India and abroad, vehicles, bank accounts, factories, shares in listed companies, jewellery, the ED said. A total of Rs 2565.90 crore worth of assets have been seized or seized in this case and three prosecution complaints have been filed, the agency said.
Mehul Choksi and his nephew Nirav Modi were involved in a huge fraud of Rs 14,000 crores. Punjab National Bank (PNB), Facing charges of fraud, corruption and money laundering. The ED has accused Choksi of running an organized racket to cheat customers and lenders in India, Dubai and the US. Nirav Modi, a co-accused, was arrested in London in 2019 and extradition proceedings are underway.
Choksi, who is the main accused in the PNB case, is currently facing proceedings under the Fugitive Economic Offenders (FEO) Act, which empowers the central government to seize assets before the trial begins.
Billionaire jeweler Nirav Modi and his uncle Mehul Choksi, the promoter of Gitanjali Gems, allegedly cheated him of crores. According to the latest reports, Choksi’s condition is similar to that of a fugitive still living in Antigua.