**Title:** ED Transfers Mumbai Flats Linked to PNB Fraud for Liquidation
**Meta Description:** The Enforcement Directorate has transferred four flats in Mumbai linked to Mehul Choksi to a liquidator as part of efforts to recover funds from the Punjab National Bank fraud.
**URL Slug:** ed-transfers-mumbai-flats-pnb-fraud
**Headline:** Enforcement Directorate Transfers Flats in Mumbai to Liquidator Amid PNB Fraud Recovery Efforts
In a renewed effort to recover funds from the Rs 6,097-crore Punjab National Bank (PNB) fraud, the Enforcement Directorate (ED) has transferred four attached flats in Mumbai, associated with fugitive businessman Mehul Choksi, to a court-appointed liquidator for monetization. This handover, executed by the ED’s Mumbai Zonal Office on November 21, represents a significant step in the agency’s ongoing mission to return assets to victim banks and legitimate claimants.
### Properties Transferred for Auction
The properties, situated in Project Tatva, Urja, A Wing on Datthapada Road in Borivali (East), were seized as part of the money-laundering investigation involving Choksi and his associates. With the transfer now complete, the liquidator can proceed with the valuation and auction of these assets. To date, the ED has handed over immovable and movable assets valued at approximately Rs 310 crore across Mumbai, Kolkata, and Surat to the liquidator of Gitanjali Gems Ltd.
### Choksi’s Alleged Fraud and Asset Trail
The ED’s investigation, conducted under the Prevention of Money Laundering Act, revealed that between 2014 and 2017, Choksi, along with his associates and certain PNB officials, colluded to fraudulently obtain Letters of Undertaking and Foreign Letters of Credit. This scheme resulted in a wrongful loss of Rs 6,097.63 crore to PNB, alongside defaults on loans from ICICI Bank. Extensive searches at over 136 locations across India led to the seizure of valuables and jewelry worth Rs 597.75 crore linked to the Gitanjali Group. Additionally, the agency has attached assets totaling Rs 1,968.15 crore, which include domestic and international properties, bank accounts, shares, vehicles, factories, and jewelry. In total, assets worth Rs 2,565.90 crore have been seized or attached, with three prosecution complaints filed.
### Coordinated Efforts for Asset Recovery
To expedite the restitution process, the ED and the affected banks jointly approached the Special PMLA Court in Mumbai with a consent application. The court granted permission for the ED to assist banks and liquidators across Gitanjali Group companies in the valuation and auction of attached properties, with the proceeds from sales to be deposited in fixed deposits with PNB and ICICI Bank. Additional properties are being transferred to liquidators and banks in accordance with ongoing court orders, marking a coordinated effort to advance large-scale asset recovery to its final stages.
### Conclusion
The ED’s actions reflect a determined approach to recover funds lost in the PNB fraud case, with the transfer of these flats being a crucial part of the broader strategy to return assets to the affected banks and stakeholders. As the liquidation process unfolds, it will be essential to monitor the outcomes of these auctions and the overall impact on the recovery of the defrauded amounts.
### FAQ
**What is the Punjab National Bank fraud?**
The Punjab National Bank fraud involves a scheme orchestrated by Mehul Choksi and his associates, resulting in a loss of over Rs 6,000 crore to the bank through fraudulent Letters of Undertaking and Foreign Letters of Credit.
