A Mumbai court has approved the sale of assets worth Rs 2,565.90 crore ($312 million USD) seized from Mehul Choksi, a key figure in the Punjab National Bank (PNB) fraud case. This move aims to compensate victims of the fraud. Over ₹125 crore has already been returned to victims, according to sources.
The Enforcement Directorate (ED) announced the court’s decision on December 10th via their official social media account, stating: “Hon’ble Special Court (PMLA), Mumbai allowed ‘monetisation of properties’ amounting to Rs 2,565.90 Crore attached or seized by the ED, Mumbai in Mehul Choksi case (PNB fraud case).”
Choksi and his nephew, Nirav Modi, are accused of defrauding PNB of ₹14,000 crore. Choksi faces charges including cheating, corruption, and money laundering. The ED alleges Choksi led a scheme that defrauded customers and lenders in India, Dubai, and the US.
Choksi became a citizen of Antigua and Barbuda in 2017 and has avoided extradition. A non-bailable warrant was issued against him and other accused in 2018.
Choksi’s family built their gems business starting in the mid-1960s. He helped create several jewelry brands, including Gili, Nakshatra, and Asmi. The group claimed to be the world’s largest integrated branded jewellery manufacturer-retailer in its 2016-17 annual report.
Choksi has argued he cannot return to India due to circumstances beyond his control and should not be declared a fugitive economic offender. He claims he did not leave to avoid prosecution and is not refusing to return, adding that Indian authorities suspended his passport.
PNB shares rose nearly 2% after the court decision. The ED, PNB, and ICICI Bank applied to return over ₹125 crore to victims.
