- Gitanjali Gems allowed to value and auction 13 unsecured properties linked to Mehul Choksi
- Properties include flats, commercial units, industrial galas, and gems worth around Rs 46 crore
- Proceeds from the auction to be kept as fixed deposits in the special court's name, the court said
A special court in Mumbai has allowed Gitanjali Gems Ltd - the company at the centre of the Rs 23,000 crore Punjab National Bank (PNB) fraud case - to value and auction 13 unsecured properties linked to fugitive Mehul Choksi. The court directed that the proceeds from the auction be kept as a fixed deposit in the name of the special court.
The 13 properties, which include flats and gems, are estimated to be worth around Rs 46 crore, the order dated November 4 mentioned.
Among the assets are four flats in Borivali (around Rs 2.6 crore), a commercial unit in the central wing of Bharat Diamond Bourse with 14 car parking in Bandra-Kurla Complex (around Rs 19.7 crore), six industrial galas in Goregaon East, and another gala in Goregaon's Udyog Nagar. It also includes silver bricks, semi-precious stones, and machines at the company's facility in Jaipur. The valuation of the assets is from 2018.
The court, in its order, made it clear that only the unsecured assets will be auctioned and not those claimed by secured creditors. It added that the ownership and confiscation of the proceeds will be determined only after the trial.
"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 order read.
Gitanjali Gems is one of the central entities in the Enforcement Directorate probe into the Punjab National Bank fraud case, in which Choksi has been declared a fugitive economic offender.
A Belgian court last month allowed Choksi's extradition to India, saying that it has no legal barrier and the charges against him are "serious enough to justify it". According to the court's order, Choksi is not a Belgian citizen but a foreign national. The court also noted that Choksi's role in the offences could involve participation in a criminal gang, fraud, corruption, and the use of forged documents - all considered serious offences. However, it clarified that one of the charges from India - the destruction of evidence (IPC Section 201) - is not recognised as a crime under Belgian law, and so the extradition cannot be granted on that specific count.
Choksi, earlier this week, challenged the court's order before Belgium's Supreme Court.
