Mumbai: In a fresh step towards asset recovery in the Rs 6,097-crore Punjab National Bank (PNB) fraud case, the Enforcement Directorate’s Mumbai Zonal Office has handed over four attached flats in Project Tatva, Urja – A Wing, at Dattapada Road, Borivali (East), to the liquidator on November 21. These properties, attached in the case involving Mehul Choksi and others, will now be monetised by the liquidator for the benefit of affected victims,lenders and other legitimate claimants,the probe agency said on Monday.
In its official statement, the ED said the four flats were among the assets attached in the probe against fugitive diamantaire Mehul Choksi and his associates. With this latest transfer, the agency has so far handed over movable and immovable assets worth around Rs 310 crore,located across Mumbai, Kolkata and Surat to the liquidator of Gitanjali Gems Ltd., officials added.
According to the ED’s investigation under the Prevention of Money Laundering Act (PMLA), Mehul Choksi, along with associates and certain officials of Punjab National Bank, fraudulently obtained Letters of Undertaking (LoUs) and Foreign Letters of Credit (FLCs) between 2014 and 2017, causing a wrongful loss of ₹6,097.63 crore to PNB. Choksi had also defaulted on a loan taken from ICICI Bank.
The agency conducted searches at more than 136 locations nationwide,seizing jewellery and valuables worth Rs 597.75 crore belonging to the Gitanjali Group. It later attached additional assets valued at Rs 1,968.15 crore, including overseas properties, factory premises, vehicles, bank accounts, shares of listed companies and high-value jewellery. In total, assets worth Rs 2,565.90 crore have been seized or attached in the case, and three prosecution complaints (PCs) have been filed by the central agency.
To speed up the recovery process for the victim banks, the ED and lenders adopted a joint strategy and approached the Special PMLA Court in Mumbai with a consent application.The court permitted the ED to help banks and liquidators conduct valuation and auction of attached or seized assets. It further directed that proceeds from such auctions be deposited as fixed deposits in PNB or ICICI Bank. Officials said the remaining attached assets are being transferred to the liquidator or banks as per court orders.
Meanwhile, India’s extradition proceedings against Choksi are progressing in Belgium. Choksi has challenged before Belgium’s Supreme Court an October 17 ruling by the Antwerp Court of Appeal that upheld India’s extradition request. His appeal is scheduled for hearing on December 9.
The Indian government has prepared for his extradition, and the Ministry of Home Affairs (MHA) has provided a sovereign assurance to Belgian authorities that Choksi will be held in Mumbai’s Arthur Road Jail, Barrack No. 12, under conditions meeting international human rights standards, including those of the European Court of Human Rights (ECHR).
According to the assurance, Choksi will not face solitary confinement and will share a cell with another white-collar crime accused. The cell will have adequate ventilation, lighting, sanitation and bedding, along with daily cleaning. The government has detailed medical facilities available inside the jail, including six full-time doctors, a 20-bed jail hospital, emergency access to Sir JJ Hospital and the option to consult private specialists at his own cost.
The MHA also assured that Choksi will receive a monitored diet, and subject to court approval, may be permitted home-cooked food. He will have access to an open-air exercise yard, yoga and indoor games, weekly family visits, daily lawyer meetings, phone calls, newspapers and television. Barrack No. 12 is under 24x7 CCTV surveillance, segregates inmates based on risk profile, and is regularly inspected by prison authorities and human rights bodies.
The government said these commitments are binding and intended to address Belgium’s concerns under Article 3 of the ECHR, as India seeks Choksi’s extradition in the PNB fraud case.
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