PNB Fraud Case: ED Begins Returning Over ₹2,500 Crore Worth of Mehul Choksi’s Assets to Creditors
New Delhi: The Enforcement Directorate (ED) has begun the process of returning assets worth over ₹2,500 crore linked to absconding businessman Mehul Choksi in connection with the ₹13,000 crore Punjab National Bank (PNB) loan fraud case. Acting on the orders of a special Prevention of Money Laundering Act (PMLA) court in Mumbai, the ED initiated the restitution process, with properties valued at more than ₹125 crore already handed over to the Liquidator of Gitanjali Gems Ltd, one of Choksi’s companies.
The assets handed over so far include six flats in Kheni Tower, Santacruz (East), and two factories or warehouses located in the Santacruz Electronic Export Processing Zone (SEEPZ), Mumbai. The ED confirmed that it had attached or seized assets worth ₹2,565.90 crore in the case, and the court has now allowed the monetisation of these properties.
In a proactive move, the ED collaborated with affected banks and liquidators to seek approval for asset valuation and auction. On September 10, the court directed that the ED would oversee the auction process, with the proceeds deposited into fixed deposits for Punjab National Bank and ICICI Bank—two of the affected lenders.
Mehul Choksi, accused of cheating PNB with the help of certain bank officials, has been residing in Antigua since 2018. His firm, Gitanjali Gems, along with others, allegedly misused Letters of Undertaking (LoUs) to orchestrate the fraud. The ED has filed three chargesheets against Choksi to date.
Meanwhile, Choksi’s nephew and co-accused Nirav Modi, also a fugitive diamond trader, has been detained in London since 2019. He continues to fight extradition to India following requests made by Indian investigative agencies.
The PNB fraud case, involving multiple bank officials and employees, remains one of India’s largest financial scandals.
News Source : “Information for this article was gathered from a variety of reliable news outlets.”
