Court Allows Auction Of Mehul Choksi's Gitanjali Gems Assets Worth Rs 46 Crore

A Mumbai special court has allowed Gitanjali Gems Ltd to value and auction 13 unsecured properties linked to fugitive businessman Mehul Choksi in the ₹23,000-crore Punjab National Bank fraud case.

Assets Worth ₹46 Crore Of Fugitive Mehul Choksi Set For Auction

Source : ANI

A special court in Mumbai has given Gitanjali Gems Ltd, the company at the heart of the massive ₹23,000-crore Punjab National Bank (PNB) fraud case, the green light to value and auction 13 unsecured properties linked to fugitive businessman Mehul Choksi.

Court Orders Sale Proceeds To Be Secured In Fixed Deposit

According to the court’s order dated November 4, the funds raised from the auction must be deposited as a fixed deposit (FD) under the name of the special court. The total estimated value of these properties stands at around ₹46 crore.

The assets include a mix of residential, commercial, and industrial properties, along with valuables. Among them are four flats in Borivali worth about ₹2.6 crore, a commercial unit with 14 car parking spaces in the Bharat Diamond Bourse’s central wing at Bandra-Kurla Complex valued at nearly ₹19.7 crore, six industrial galas in Goregaon East, and one in Udyog Nagar, Goregaon. Also listed for valuation are silver bricks, semi-precious stones, and machinery located at the company’s facility in Jaipur. The valuation is based on assessments last made in 2018.

Only Unsecured Assets To Be Auctioned

The court emphasized that the auction will include only unsecured properties, not those claimed by secured creditors. It further clarified that the question of ownership and confiscation of proceeds will be settled only after the trial concludes.

“The applicants and the Liquidators, as the case may be, shall be allowed to open fixed deposits with ICICI Bank, being the lead bank for the GGL and NWL consortiums, to hold the sale proceeds,” the court stated. “The proceeds, after deducting costs and expenses related to valuation and auction, shall be placed as FDs in favor of this Court.”

Choksi’s Legal Troubles Deepen Abroad

Gitanjali Gems remains one of the central companies under the Enforcement Directorate’s scrutiny in connection with the PNB scam. Mehul Choksi, who fled India in 2018, has been declared a fugitive economic offender.

Adding to his mounting troubles, a Belgian court last month approved Choksi’s extradition to India, ruling that there were no legal barriers preventing it. The court found the allegations against him, ranging from fraud and corruption to criminal conspiracy, serious enough to warrant extradition. It also noted that Choksi is not a Belgian citizen but a foreign national residing there.

However, the court excluded one charge under Indian law, destruction of evidence (Section 201 of the IPC), since it does not constitute an offense under Belgian legislation.

Choksi Challenges Extradition Ruling

Earlier this week, Choksi filed an appeal before Belgium’s Supreme Court challenging the extradition order. His move signals yet another attempt to delay his return to India, where multiple agencies continue to pursue action against him for his alleged role in one of the country’s largest banking frauds.

As the legal proceedings continue, the auction of his unsecured assets marks a crucial step in the ongoing efforts to recover losses from the multi-crore scam that shook India’s banking sector.