PNB Fraud Case: In a major development in the PNB bank-fraud case, a special court in Mumbai on Sunday gave a green light to value and auction Gitanjali Gems Ltd’s 13 unsecured properties which are linked to fugitive Mehul Choksi. The court has instructed that the funds generated from the auction be maintained as a fixed deposit in the name of the special court.
What Are The Assets?
The 13 properties, which include assets such as flats, precious gems and other assets, are estimated to be worth Rs 46 crore, as per the order (darted November 4). The assets include – 4 flats located in Borivali (around Rs 2.6 crore), a commercial unit in Bharat Diamond Bourse with 14 car parking in Bandra-Kurla Complex (Rs 19.7 crore), six industrial galas located in Goregaon East and 1 in Udyog Nagar, a silver bricks, some semi-precious stones, and factory machines at the company’s facility located in Rajasthan’s Jaipur. Notably, the valuation of the above mentioned assets is from 2018.
What Did The Special Court Say In Its Order?
The court has ordered to auction only the unsecured assets and not those claimed by secured creditors. The special bench stated that the determination of ownership and the confiscation of the proceeds will be done only after the trial concludes.
“The applicants and the Liquidators, as the case may be, shall be allowed to open fixed deposit (“FDs”) with ICICI Bank (being the lead bank for GGL Consortium and NWL Consortium) with respect to sale proceeds from sale of assets. The sale proceeds shall be deposited as FDs (in the manner mentioned above) after deducting all associated costs and expenses incurred for purpose of carrying out valuation/auction. The sale proceeds deposited in form of FDs will be in favour of this Court,” the special court’s order read.
The Gitanjali Gems
Gitanjali Gems Ltd is the company involved in Rs 23,000 crore Punjab National Bank fraud case. The company is one of the central bodies in the Enforcement Directorate probe in which Mehul Choksi has been declared a fugitive economic offender.
Mehul Choksi’s Extradition To India
In October, A Belgian court allowed the extradition of the fugitive businessman to India. It stated that the charges against levelled against him by the Indian court are ‘serious enough to justify it’
The court stated that Choksi is a foreign national and is not a Belgian citizen. Here are strong chances that his role in the offences could involve participation in a criminal gang, corruption and fraud.
However, the Belgian court highlighted that a charge such as the destruction of evidence (IPC Section 201) – is not recognised as a crime under its country’s law and extradition of Choksi cannot be granted on that count.
Earlier this week, the fugitive businessman challenged the court’s order before the Supreme Court of Belgium.
