The Enforcement Directorate (ED), in collaboration with Punjab National Bank (PNB) and ICICI Bank, has initiated the restitution of properties linked to the Mehul Choksi bank fraud case. This step is part of efforts to return seized and attached assets to the rightful owners and victims of money laundering, while also enabling financial institutions to monetise these assets.

The Special PMLA Court in Mumbai has approved the monetisation of properties worth Rs 2,565.90 crore, attached or seized by the ED in the PNB fraud case involving fugitive diamantaire Mehul Choksi. In accordance with the court order, the process of handing over these assets has begun, with properties worth over Rs 125 crore, including flats in Mumbai and two factories/godowns at SEEPZ, Mumbai, already transferred to the Liquidator of M/s Gitanjali Gems Ltd.

The ED’s investigation revealed that Mehul Choksi, in collusion with associates and PNB officials, fraudulently obtained Letters of Undertaking and Foreign Letters of Credit between 2014 and 2017, leading to a loss of Rs 6,097.63 crore to PNB. Choksi also defaulted on loans from ICICI Bank. The ED has conducted searches at over 136 locations across India, seizing valuables and jewellery worth Rs 597.75 crore belonging to the Gitanjali Group, and has attached immovable and movable assets worth Rs 1,968.15 crore, including properties, vehicles, bank accounts, factories, shares, and jewellery.

In total, assets valued at Rs 2,565.90 crore have been attached or seized, with three prosecution complaints filed under the Prevention of Money Laundering Act (PMLA). The ED and the victim banks have moved the special court to expedite the asset monetisation process. As per the court order dated September 10, 2024, the ED is assisting the banks and liquidators of Gitanjali Group companies in valuing and auctioning the attached assets. Proceeds from these auctions will be deposited as fixed deposits in PNB and ICICI Bank.

As part of the restitution process, six properties, including flats in Kheni Tower, Santacruz East, Mumbai, valued at Rs 27 crore, and two SEEPZ properties valued at Rs 98.03 crore, have been handed over to the liquidator, with the transfer of remaining assets underway as per court directives.