In a significant step towards liquidating assets and recovering funds in the massive £2.3bn Punjab National Bank (PNB) fraud case, a special Prevention of Money Laundering Act (PMLA) court has granted permission for the auction of properties belonging to Gitanjali Gems Ltd (GGL). GGL is the company associated with fugitive jeweller Mehul Choksi.
The court approved the company's liquidator to proceed with the updated valuation and subsequent auction of 13 unsecured properties, which were last valued at over £4.6mn in 2018. Among the assets slated for sale are four residential flats in Borivli, a major commercial unit in the Bharat Diamond Bourse (BKC), and six industrial galas in Goregaon (East). The auction list also includes tangible items like silver bricks, semi-precious stones, and machinery held at GGL’s facility in the Jaipur Special Economic Zone (SEZ).
Special Judge A.V. Gujarathi emphasised the urgency of the matter, noting that keeping the properties idle and without maintenance would inevitably reduce their value. The judge directed the liquidator to carry out a fresh valuation and then proceed with the auction by following the due process, with facilitation and assistance from the Enforcement Directorate (ED).
Crucially, the court mandated that the proceeds generated from the sale must be deposited as a Fixed Deposit (FD) in favour of the court at ICICI Bank, the lead bank for the GGL and NWL Consortia of aggrieved lenders. After deducting all associated costs, the funds in the FDs will eventually be distributed to the banks and other lenders affected by the scam orchestrated by Choksi and his nephew, Nirav Modi.
This order marks a tangible movement toward restituting the losses suffered by the banking sector.