The Enforcement Directorate has transferred four Mumbai flats linked to Mehul Choksi to the liquidator of Gitanjali Gems to speed up monetisation and compensate victims of the PNB fraud. This marks a crucial shift from asset seizure to real recovery for banks and affected stakeholders.
In a significant development in the high-profile Punjab National Bank fraud case, the Enforcement Directorate’s Mumbai Zonal Office announced on 21.11.2025 that it has handed over four residential flats located in “Project Tatva, Urja – A Wing, Dattapada Road, Borivali (East), Mumbai” to the liquidator of Gitanjali Gems Ltd.
This important step will enable these properties to be sold and monetised, allowing the proceeds to benefit victims, lenders, and other genuine claimants affected by the massive financial scam.
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As per the official statement of the agency, these four flats were part of the assets attached during the ongoing probe into the illegal issuance of Letters of Undertaking (LoUs) and Foreign Letters of Credit (FLCs) by Punjab National Bank between 2014 and 2017.
The ED has stated that these fraudulent transactions caused a wrongful loss of Rs. 6,097.63 crore to PNB. The scam was allegedly carried out by fugitive diamond trader Mehul Choksi, his associates and certain bank officials who misused their positions to facilitate the fraud.
With the transfer of these four residential units, the ED has so far handed over movable and immovable properties worth around Rs. 310 crore to the liquidator of Gitanjali Gems Ltd. These assets are spread across major cities like Mumbai, Kolkata and Surat.
This move clearly shows a shift in the agency’s approach, from only attaching and seizing properties to actively monetising them so that actual financial recovery can take place for the affected parties.
During its investigation under the Prevention of Money Laundering Act (PMLA), the ED also revealed that apart from the LoUs and FLCs scam, Mehul Choksi had defaulted on a separate loan taken from ICICI Bank.
This further increased the scale and seriousness of the financial wrongdoing. The investigation involved extensive searches at more than 136 locations across the country, leading to the seizure of jewellery and other valuable items worth Rs. 597.75 crore belonging to the Gitanjali Group.
Further attachment orders have also been passed for additional assets valued at Rs. 1,968.15 crore. These include overseas properties, factory premises, vehicles, bank accounts, equity shares in listed companies and high-value jewellery.
When combined, the total value of assets seized or attached in this case so far stands at Rs. 2,565.90 crore.
The ED has also filed three prosecution complaints (PCs) in connection with this major money laundering case.
Earlier, a special PMLA court in Mumbai approved a joint strategy proposed by the ED and the affected banks, PNB and ICICI Bank, for the valuation and auction of the attached and seized assets.
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As per the court’s consent application, the money received from the auction of these properties will be deposited directly with PNB or ICICI Bank, helping in partial recovery of the dues.
Officials have clarified that more attached assets will be transferred either to the liquidator or directly to the banks, depending on future court orders.
On the extradition front, Mehul Choksi continues to contest India’s request in Belgium. He has appealed against the 17.10.2025 decision of the Antwerp Court of Appeal, which had upheld India’s extradition plea, and his next hearing is scheduled for 09.12.2025.
Meanwhile, the Indian Government, through the Ministry of Home Affairs, has given a sovereign assurance to the Belgian authorities that Choksi will be kept at Arthur Road Jail (Barrack No. 12) in Mumbai under conditions that meet the standards of the European Court of Human Rights (ECHR).
The assurance clearly states that he will not be kept in solitary confinement and will be provided with adequate ventilation, proper bedding, clean sanitation facilities and access to medical care, including a 20-bed jail hospital and treatment at Sir JJ Hospital if required.
He will also be allowed legal counsel, family visits, phone calls, newspapers, television and time for open-air exercise.
This latest transfer of properties highlights a renewed urgency in moving towards the monetisation stage of the PNB fraud recovery process. It reflects the ED’s intention to go beyond asset-freezing and actually realise value from these properties for the benefit of harmed banks and claimants.
However, the gap remains substantial, as the total fraud loss is estimated at over Rs. 6,097 crore, while assets handed over so far stand at about Rs. 310 crore and total attached or seized assets are around Rs. 2,566 crore.
For legal professionals, banking fraud experts and insolvency stakeholders, this development is crucial. It shows how attached properties in large-scale financial fraud cases can be transferred to liquidators and converted into actual recoveries.
It also highlights the importance of coordination between investigative agencies, banks and insolvency professionals to ensure that victims receive timely relief.
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Moreover, the ongoing extradition battle in Belgium once again points to the complex cross-border challenges involved in high-value white-collar crime cases.
As the case progresses, the focus will now shift more strongly towards value realisation and effective distribution of recovered funds among rightful claimants.
At the same time, the outcome and timeline of the extradition proceedings will remain a key factor influencing the overall pace and impact of the recovery process.
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