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New Delhi, Nov 24 (IANS) In a significant step towards recovery of assets linked to the multi-crore Punjab National Bank (PNB) fraud, the Enforcement Directorate (ED) has handed over four residential flats in Mumbai – attached in the case involving fugitive businessman Mehul Choksi – to the liquidator for monetization, the ED said on Monday.
The assets located at Project Tatva, Urja – A Wing at Duttpada Road in Borivali (East) were officially transferred on November 21, allowing the liquidation process to be carried forward for the benefit of the aggrieved banks, secured creditors and other legitimate claimants.
According to the ED, this handover is part of the ongoing efforts to ensure restitution of assets in the large-scale bank fraud case.
With this latest transfer, so far immovable and movable assets worth around Rs 310 crore spread across Mumbai, Kolkata and Surat have been handed over to the liquidator of Gitanjali Gems Ltd, the flagship company of Choksi’s group.
“So far, the immovable/movable properties located in Mumbai, Kolkata and Surat, having a total value of Rs 310 crore (approximately), were handed over to the Liquidator of M/s Gitanjali Gems Limited,” the ED said in its press note.
A money-laundering investigation under the Prevention of Money Laundering Act (PMLA) revealed that Choksi, in connivance with associates and officials of Punjab National Bank, fraudulently obtained Letters of Undertaking (LoU) and foreign Letters of Credit between 2014 and 2017.
These transactions caused a wrongful loss of Rs 6,097.63 crore to PNB. Choksi also defaulted on loans taken from ICICI Bank, leading to liabilities being scrutinized during the investigation.
“He had also taken a loan from ICICI Bank and had defaulted on that loan also,” the ED said.
During the investigation, the ED conducted searches at over 136 locations across India, seizing diamonds, jewelery and other valuables worth Rs 597.75 crore belonging to Gitanjali Group.
Assets totaling Rs 2,565.90 crore have been seized or attached in connection with the case and three prosecution complaints have been filed so far.
To expedite the restitution process, the ED and the lending banks jointly approached the special PMLA court in Mumbai, seeking permission for valuation and auction of the attached properties. The court, while allowing the agencies to proceed, directed that the proceeds from the sale be deposited as fixed deposits in PNB and ICICI Bank.
“The court passed an order stating that the ED shall facilitate the banks, liquidators of various Gitanjali group companies to conduct valuation and auction of the attached or seized properties and after auction of the said properties, the sale proceeds shall be deposited in the form of FD in PNB/ICICI Bank,” the ED said.
“Furthermore, the remaining assets are being handed over to the liquidators/banks as per the order of the Hon’ble Special Court (PMLA),” it added.
–IANS
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