Mehul Choksi
MUMBAI: In a step towards liquidation of Gitanjali Gems Ltd, the company at the centre of the Rs 23,000 crore Punjab National Bank fraud case involving Nirav Modi and his uncle Mehul Choksi, a special PMLA court allowed the company’s liquidator to proceed with valuation and subsequent auction of 13 unsecured properties valued over Rs 46 crore, reports Rebecca Samervel. Among the assets are four flats at Borivli (each valued at Rs 2.6 crore), a commercial unit in the central wing of Bharat Diamond Bourse in BKC, along with 14 car parking spaces (Rs 19.7 crore), six industrial galas in Goregaon (E) (Rs 18.7 crore), silver bricks, semi-precious stones, and machines at the company’s facility in Jaipur SEZ (Rs 90,120). The valuations are from 2018. Special judge AV Gujarathi said, “If the property is kept idle and without maintenance, it will definitely reduce the value. Hence, it is necessary to pass an order in this case urgently.”Court: Sale proceeds of Choksi’s assets to be given to affected lenders The judge said the liquidator is allowed to carry out the requisite valuation of the properties held by GGL. “Post undertaking the aforesaid valuation process, the liquidator is allowed to auction the unsecured properties which are held by GGL…by following due process under the applicable law, and the same be facilitated by the ED,” the judge said. It was further directed the liquidator is allowed to open a fixed deposit with ICICI Bank (being the lead bank for GGL Consortium and NWL Consortium) for the proceeds from the sale of assets. NWL Consortium is a consortium of banks with ICICI Bank as the lead. They are creditors to companies involved in PNB scam. “The sale proceeds shall be deposited as FDs after deducting all associated costs and expenses incurred for the purpose of carrying out valuation and auction. The sale proceeds deposited in the form of FDs will be in favour of this court.” The judge also said the sale proceeds deposited in the form of FDs will be distributed to the aggrieved lenders. The application was moved by GGL’s liquidator under the PMLA Act. It was submitted that the committee of creditors (CoC) initiated proceedings for liquidation by passing a resolution in 2019. The liquidator was appointed by an order of the National Company Law Tribunal (NCLT) dated Feb 7, 2024. On Sept 10, 2024, the special court allowed the liquidator to conduct the valuation of “secured properties” held by the company headed by Nirav Modi and Choksi. The court then called for the reply of ED. In its reply submitted through special public prosecutor Kavita Patil, ED said the plea moved by the liquidator was in the interest of justice and a necessary order may be passed. ED did not object to the plea. Nirav and Choksi are being held in jails in the UK and Belgium, respectively.
