With this latest transfer, immovable and movable assets collectively valued at approximately ₹310 crore located in Mumbai, Kolkata and Surat have now been handed over to the liquidator of M/s Gitanjali Gems Ltd.

Background: ₹6,097 Crore Banking Fraud

According to the ED investigation under the Prevention of Money Laundering Act (PMLA), Mehul Choksi, along with associates and certain officials of Punjab National Bank (PNB), fraudulently obtained Letters of Undertaking (LoUs) and Foreign Letters of Credit between 2014 and 2017, causing a wrongful loss of ₹6,097.63 crore to PNB.
Choksi also defaulted on additional loans taken from ICICI Bank.

The money laundering probe led to the seizure of valuables and jewellery worth ₹597.75 crore linked to the Gitanjali Group, and the attachment of immovable and movable properties worth ₹1,968.15 crore, including properties in India and abroad, luxury vehicles, bank accounts, shares and factories.

In total, the ED has seized and attached assets worth ₹2,565.90 crore, and has so far filed three prosecution complaints in the case.

ED–Banks Joint Action to Recover Public Funds

To accelerate financial recovery for affected banks, the ED and banks adopted a joint strategy and moved the Special PMLA Court, Mumbai through a Consent Application.
The court permitted the ED to assist banks and liquidators in conducting valuation and auction of attached assets. The court further directed that sale proceeds must be deposited as Fixed Deposits in PNB and ICICI Bank.

The ED stated that other remaining assets will continue to be handed over to liquidators and banks as per court orders.

Significant Progress in Monetisation

This development reinforces the agency’s ongoing efforts to ensure restitution for victims of one of India’s biggest banking frauds. The monetisation of these Borivali properties marks another step forward in asset recovery from fugitives like Mehul Choksi and Nirav Modi, who fled India after the scam came to light.

Also Read: Nirav Modi’s Assets Put On Auction By ED.

The post ED Hands Over Mehul Choksi’s Borivali Homes to Liquidator for Monetisation; Move to Benefit Victim Banks appeared first on Square Feat India.