PNB Fraud: Court Approves Monetisation of ₹2,566 Crore in Choksi Assets

A special PMLA court in Mumbai has allowed the monetisation of properties worth ₹2,565.9 crore linked to Mehul Choksi, the key accused in the Punjab National Bank (PNB) fraud case. These assets, seized by the Enforcement Directorate (ED), will be used to recover funds for PNB and ICICI Bank, the two main victims of the scam.

What’s Happening?

Over ₹125 crore worth of properties, including flats in Santacruz and industrial units in SEEPZ, Andheri, have already been handed over to the liquidator of Choksi’s company, Gitanjali Gems Ltd. The remaining assets are in the process of being transferred, with the ED assisting in valuation and auctioning. The money from these sales will be deposited as fixed deposits with the banks.

The Backstory

Between 2014 and 2017, Choksi and his nephew Nirav Modi allegedly colluded with PNB officials to fraudulently secure Letters of Undertaking (LoUs) and Foreign Letters of Credit, causing a loss of ₹6,097.63 crore to the bank. Choksi also defaulted on loans from ICICI Bank, adding to the financial blow.

The ED’s investigation, which began in 2018, has led to the seizure of assets worth ₹2,565.9 crore so far. This includes jewellery, real estate, vehicles, and overseas properties. The agency also conducted searches across 136 locations in India during its probe.

Where Are They Now?

Choksi fled India in January 2018 and is currently in Antigua and Barbuda, fighting extradition. His nephew, Nirav Modi, was arrested in London in 2019 and is facing extradition proceedings. Meanwhile, the ED continues its efforts to bring back funds through the monetisation of attached properties.

What’s Next?

This ruling is a major step in addressing the financial fallout of the ₹14,000 crore PNB scam. PNB’s stock showed some movement, closing 1.56% higher at ₹110.47 on December 10, showing optimism as the recovery process gains momentum. PNB’s stock has gained 12.30% year-to-date and 24.16% over the past year, reflecting growth in its market performance.

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