Mehul Choksi's assets under hammer - Rs 46 crore properties to be auctioned, PMLA court nods

Mumbai (The Uttam Hindu): The Enforcement Directorate (ED) is tightening its grip on fugitive businessman Mehul Choksi, the main accused in the Punjab National Bank (PNB) scam. A special PMLA court in Mumbai has approved the auction of 13 unsecured properties belonging to Choksi's company, Gitanjali Gems. These properties are valued at approximately ₹46 crore.

What will be auctioned?

The properties approved for auction by the court include several prime real estate properties in Mumbai, including four residential flats in Borivali, an office complex of the Bharat Diamond Bourse in the Bandra-Kurla Complex (BKC), and four industrial units in Goregaon East. Additionally, silver bricks, semi-precious stones, and jewelry-making machinery stored in the Jaipur Special Economic Zone (SEZ) will also be valued and auctioned.

The court's decision on the liquidator's application came on an application by Shantanu Ray, the liquidator of Gitanjali Gems appointed by the National Company Law Tribunal (NCLT). Ray had sought permission to dispose of the assets seized by the Enforcement Directorate (ED). The Enforcement Directorate (ED) also informed the court that it had no objection to the proposed valuation and sale.

What will happen to the auction proceeds?

Special Judge AV Gujarathi, in his November 4 order, clarified that only those properties can be auctioned that are not claimed by secured creditors.

The court directed that the proceeds from the auction (after deducting expenses) be held as a fixed deposit (FD) in the name of the court until the final disposal of the money laundering case. The funds will remain in judicial custody under the PMLA.