Mehul Choksi (Photo by Gemma Handy)
In a major step forward in the long-running Gitanjali Gems fraud case, a special court under India’s Prevention of Money Laundering Act (PMLA) has authorized the official liquidator to auction 13 properties belonging to the defunct jewelry firm once owned by Mehul Choksi, the Antiguan citizen by investment and fugitive diamond tycoon.
The court directed that all proceeds from the auction be placed in a fixed-deposit account in the name of the special court, ensuring that the funds remain secured pending further judicial orders.
According to filings, the properties slated for auction carry an estimated value of ₹46 crore (about USD $5.5 million).
They include four luxury flats in the Tatva Urja project in Borivali, a commercial property in the Bharat Diamond Bourse with 14 parking spaces, six industrial units in Virwani Industrial Estate, Goregaon (East), and one unit in Udyog Nagar, Goregaon.
The same court had, in February, granted a similar request allowing valuation and disposal of other Gitanjali Gems properties through public auction.
Allowing the latest plea, Special Judge A.V. Gujarathi warned that delaying the sale could diminish asset value.
“If the property is kept idle and without maintenance, then it will definitely reduce the value,” the judge observed.
Choksi left India on January 2, 2018, claiming he sought medical treatment abroad. His lawyers maintain he did not flee to avoid prosecution and argue that he cannot return because his passport was revoked and he continues to face serious health issues.
The Central Bureau of Investigation (CBI) initially charged Choksi for defrauding Punjab National Bank (PNB) by fraudulently securing Letters of Undertaking (LoUs). The Enforcement Directorate (ED) later opened a money-laundering probe, leading to the seizure of multiple properties and assets linked to Gitanjali Gems and its affiliates.
Choksi obtained citizenship of Antigua and Barbuda through the country’s Citizenship-by-Investment Programme (CIP) in 2017, a year before leaving India. He has since remained in Antigua, where he faces ongoing legal and diplomatic efforts by Indian authorities seeking his extradition to answer charges connected to the multi-billion-dollar PNB scandal.
The court-approved liquidation marks another step toward recovering defrauded funds and advancing India’s pursuit of accountability in one of its largest-ever banking fraud cases.
It took this long to reach auction stage? The justice system really moves at a snail’s pace when big money’s involved.
A reminder that no matter how powerful, everyone is answerable to the law.
Well well well. Choksi it doesn’t look good for you at all
It’s only fair that the assets are liquidated and used to compensate the victims they’ve waited long enough
These developments keep reminding us that no matter how far you run, the law can still catch up
Every time Choksi’s name comes up, it just brings back how massive that fraud was. Billions gone and so many lives affected.
Good move by the Indian court. Assets should not just sit there losing value while cases drag on