Fri Dec 13 01:27:44 UTC 2024: **ED Begins Returning ₹2,565 Crore in Choksi Fraud Case**

Mumbai, December 10, 2024 – The Enforcement Directorate (ED) announced today that it has begun returning properties worth ₹2,565.90 crore to Punjab National Bank (PNB) and ICICI Bank. The assets were seized as part of a money laundering investigation into the alleged fraud perpetrated by absconding businessman Mehul Choksi.

A Mumbai Special PMLA Court ordered the ED to monetize the assets following a joint application from the banks. The ED has already handed over properties exceeding ₹125 crore to the liquidator of Gitanjali Gems Ltd., including six flats and two factories. The remaining assets are in the process of being returned.

The ED’s investigation, conducted under the Prevention of Money Laundering Act (PMLA), revealed that Choksi, in collusion with associates and PNB officials, defrauded PNB of ₹6,097.63 crore between 2014 and 2017 through fraudulent Letters of Undertaking and Foreign Letters of Credit. He also defaulted on a loan from ICICI Bank. The ED conducted over 136 searches nationwide, seizing assets including ₹597.75 crore worth of jewellery and additional assets totaling ₹1968.15 crore. Three prosecution complaints have been filed.

To expedite the process, the ED and the banks collaborated, filing a joint application with the court. The court’s September 10th order stipulated that the ED would facilitate the valuation and auction of seized properties, with proceeds deposited into the banks as fixed deposits.

Read More