The PMLA Court in Mumbai has given the go ahead to monetize properties worth Rs 2565.90 crore, seized by the Enforcement Directorate, in the Mehul Choksi fraud case. Shares of PNB reacted to the development sharply, rising close to 2% in the final hours of trade, in anticipation of recovery of dues in the long-pending case.
The ED, in collaboration with PNB and ICICI Bank, had filed an application seeking restitution of assets worth over Rs 125 crore to their rightful owners and victims.
The Enforcement Directorate posted on its social media handle X, on December 10, "Hon’ble Special Court (PMLA), Mumbai allowed “monetisation of properties” amounting to Rs 2565.90 Crore attached or seized by the ED, Mumbai in Mehul Choksi case (PNB fraud case)."
Choksi along with nephew Nirav Modi have been named in the Rs 14,000 crore fraud at Punjab National Bank, and charged for cheating, corruption and money laundering, among other crimes. A charge sheet by the Enforcement Directorate (ED) named Choksi as a person who ran an organised racket to cheat customers and lenders across India, Dubai and US.
In 2017, Choksi had secured the citizenship in Antigua and Barbuda through an investment programme, and has since then being avoid arrest or extradition.
In 2018, the PMLA court had issued a non-bailable warrant against Choksi and other accused for colluding with Punjab National Bank (PNB) employs in an massive fraud.
The Choksi family built the gems business starting mid-60s, but the business got a corporate makeover by Mehul Choksi.
Choksi was instrumental in launching and establishing various successful jewellery brands of the group in India’s unorganised diamond and jewellery industry. In its 2016-17 annual report, the group called itself the largest integrated branded jewellery manufactuer-retailer in the world with annual turnover of $2.5 billion, spread to brands like Gili, Nakshatra, Asmi and many others.
Read More: Mehul Choksi’s rise and fall from celebrity Diamond King to a fugitive on the run
Diamantaire Mehul Choksi had told a special court that he hasn’t been able to return to India due to reasons beyond his control and hence cannot be declared a fugitive economic offender. He claimed that he didn't leave India to avoid criminal prosecution nor is he refusing to return to the country. He said his passport has been suspended by Indian authorities.
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