A Mumbai court has granted permission to auction assets worth ₹2,565.9 crore (approximately $308 million USD) belonging to fugitive diamantaire Mehul Choksi, a key figure in the Punjab National Bank (PNB) scam. The properties, which were seized by the Enforcement Directorate (ED) in 2018, include flats and factories. The court's decision follows a joint application by PNB and ICICI Bank, supported by the ED, to expedite the return of these assets to their rightful owners.
The move represents a significant step in recovering funds illicitly siphoned off in one of India's largest financial frauds. Mehul Choksi, chairman of the Gitanjali Group, is currently a fugitive believed to be residing in Antigua and Barbuda. He and Nirav Modi were both declared "Fugitive Economic Offenders" in accordance with India's 2018 law, which allows authorities to seize and sell their assets.
The assets slated for auction include prime properties in Mumbai, such as flats in Kheni Tower, Santacruz, valued at approximately ₹27 crore, and two factories in SEEPZ, Andheri East, worth ₹98.03 crore. A liquidator has been appointed to manage these properties as part of the court's order. The ongoing transfer of additional assets is underway.
The PNB scam, which surfaced in February 2018, involved the fraudulent issuance of Letters of Undertaking (LoUs) by PNB employees, enabling Choksi and his associates to siphon off over ₹13,000 crore. The ED has been diligently working to track and seize Choksi's assets to mitigate financial losses to the state.
In a related development, a Belgian court has cleared the extradition of Mehul Choksi to India in connection with the ₹13,000 crore PNB fraud case. The Court of Appeal in Antwerp upheld the validity of Choksi's arrest by Belgian police, confirming that India's extradition request met all procedural and legal requirements under Belgian law. The court also dismissed Choksi's contentions, asserting that the extradition documentation submitted by India was complete and compliant with international cooperation standards in criminal matters.
India has assured Belgian authorities that Choksi would be held in lawful custody, adhering to international human rights norms upon extradition. Details of the detention facility earmarked for Choksi at Barrack No. 12 of the Arthur Road Jail in Mumbai were submitted, ensuring adequate medical facilities, lighting, ventilation, and security arrangements. Choksi has been granted fifteen days to file an appeal before Belgium’s Supreme Court.
Choksi initially fled India in 2018, obtaining citizenship in Antigua and Barbuda through its Citizenship by Investment program. He was later detained in Belgium following intelligence sharing between Indian and Belgian agencies. Meanwhile, Nirav Modi, also implicated in the PNB scam, was arrested in London in March 2019 and remains in Wandsworth Prison, fighting extradition to India.
