Mumbai: In a significant development, the special PMLA court has permitted the official liquidator of Mehul Choksi’s Gitanjali Gems Limited to auction around 13 properties owned by the firm. The court directed that the proceeds from the auction be kept as a fixed deposit in the name of the special court.
Earlier Permission for Property Valuation and Disposal
The court had in February allowed similar such application wherein the liquidator was allowed to get valuation of properties of Gitanjali Gems Limited and subsequently its disposal by way of an auction.
Properties Valued at ₹46 Crore
The court in a similar way allowed the plea of the official liquidator for release of around 13 properties which is approximately valued at Rs46 crore. The properties include, four flats in Project Tatva Urja in Borivali, a property in Bharat Diamond Bourse with 14 car parking, six Galas in Virwani Industrial Estate, Goregaon (East), a Gala in Udyog Nagar, Goregaon.
Court Observes Risk of Value Reduction
The special judge AV Gujarathi allowed the plea observing, “If, the property is kept idle and without maintenance, then it will definitely reduce the value.”
Choksi’s Defence and Health Claims
Choksi had left India on January 2, 2018, claiming he was heading for better medical treatment. He claimed that he didn't leave India to avoid criminal prosecution nor is he refusing to return to the country. His lawyers have been contending that he cannot be declared as a fugitive as he is unable to return to India because his passport has been revoked, while he also suffers health issues.
CBI and ED Cases Against Choksi
Initially, the CBI booked the diamond trader for cheating the PNB by obtaining a letter of undertaking (LoU) fraudulently, after which the ED initiated a money laundering probe against him.
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Choksi’s three companies – Gitanjali Gems, Gili India Ltd and Nakshatra Brands – allegedly fraudulently obtained LoUs worth Rs3,011.39 crore and got the credit limit of foreign letters of credit enhanced to Rs3,086.24 crore.
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