ED Transfers Four Mumbai Properties Linked to Mehul Choksi in PNB Fraud Case Recovery Efforts

In a major development in the Punjab National Bank fraud case, the Enforcement Directorate (ED) has transferred four residential apartments in Mumbai connected to fugitive businessman Mehul Choksi to a liquidator for monetisation, as announced on Monday.

The properties, situated in Project Tatva, Urja – A Wing on Datthapada Road in Borivali (East), were officially handed over on November 21. This transfer enables the liquidation process to proceed, ultimately benefiting victim banks, secured creditors, and other legitimate claimants.

This handover represents part of the ED's sustained efforts to recover assets in the extensive bank fraud investigation. With this recent transfer, approximately Rs 310 crore worth of immovable and movable properties across Mumbai, Kolkata, and Surat have been transferred to the liquidator of Gitanjali Gems Ltd., the primary company in Choksi's business group.

The money-laundering investigation under the Prevention of Money Laundering Act (PMLA) uncovered that Choksi, working with associates and Punjab National Bank officials, fraudulently acquired Letters of Undertaking (LoUs) and Foreign Letters of Credit between 2014 and 2017, resulting in a loss of Rs 6,097.63 crore to PNB. Additionally, Choksi defaulted on loans from ICICI Bank, further expanding his financial liabilities under investigation.

During the investigation, the ED conducted searches at more than 136 locations throughout India, confiscating diamonds, jewelry, and additional valuables worth Rs 597.75 crore connected to the Gitanjali Group. In total, assets valued at Rs 2,565.90 crore have been seized or attached in relation to the case, with three prosecution complaints filed to date.

To expedite the restitution process, the ED and lending banks jointly petitioned the Special PMLA Court in Mumbai, requesting authorization for the valuation and auction of attached properties. The court granted permission, instructing that proceeds from sales be deposited as fixed deposits in PNB and ICICI Bank.

According to the ED's statement, the court ordered that the agency would facilitate banks and liquidators in various Gitanjali Group companies to conduct valuation and auction of the attached or seized properties, with the sale proceeds to be deposited as fixed deposits in PNB and ICICI Bank.

The agency further noted that remaining assets are being transferred to the liquidator/banks in compliance with the Special Court's directives.