PNB scam: Court allows auction of Mehul Choksi’s assets worth Rs 2,566 crore

A special court in Mumbai on Tuesday allowed the auction of assets worth Rs 2,565.9 crore linked to fugitive businessman Mehul Choksi.

Choksi is one of the prime accused, along with his nephew Nirav Modi, in the over Rs 13,000-crore Punjab National Bank fraud case.

The court’s decision to allow the auction came on an application from the victim banks, Punjab National Bank and ICICI Bank, for restitution of assets.

The proceeds of the auction would be held as fixed deposits by PNB and ICICI Bank, the court said, according to the Enforcement Directorate.

Following the order, the process of handing over assets worth more than Rs 125 crore to the liquidator of Choksi’s Gitanjali Gems Limited has been initiated, the central agency added.

“The handed over properties include flats situated at Mumbai and two factories/godowns situated at SEEPZ Mumbai,” said the Enforcement Directorate. “Restitution of rest of the properties is also in progress.”

The PNB fraud came to light in February 2018 when the bank informed the stock exchange BSE that it had detected “fraudulent and unauthorised transactions” worth Rs 11,380 crore at a branch in South Mumbai.

A few officials of the public sector bank had allegedly issued fraudulent Letters of Undertaking to Modi’s companies, resulting in the loss of Rs 6,097.6 crore to PNB.

Choksi had also defaulted on another loan he had...

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