Mumbai Court Allows Auction Of Mehul Choski's Properties, Silver Bricks Worth Rs 46 Crore

A special court in Mumbai has permitted Gitanjali Gems Ltd, the company at the centre of the Rs 23,000-crore Punjab National Bank (PNB) fraud case, to value and auction 13 unsecured properties linked to fugitive

businessman Mehul Choksi.

In its order dated 4 November, the court directed that the proceeds from the auction be deposited as a fixed deposit (FD) in the name of the special court itself.

The properties — which together are estimated to be worth around Rs 46 crore — include four flats in Borivali valued at about Rs 2.6 crore, a commercial unit at Bharat Diamond Bourse in Bandra-Kurla Complex with 14 car parking spaces worth nearly Rs 19.7 crore, six industrial galas in Goregaon East, and another in Udyog Nagar, Goregaon.

The list also features silver bricks, semi-precious stones, and machinery from the company’s Jaipur facility. The valuation dates back to 2018.

The court clarified that only unsecured assets will be auctioned, while properties claimed by secured creditors will remain untouched. It added that decisions regarding ownership or confiscation of the sale proceeds would be taken only after the trial concludes.

According to the order, “The applicants and the Liquidators, as the case may be, shall be allowed to open fixed deposits with ICICI Bank (being the lead bank for GGL Consortium and NWL Consortium) with respect to sale proceeds from sale of assets.

The sale proceeds shall be deposited as FDs after deducting all associated costs and expenses incurred for purpose of carrying out valuation/auction. The sale proceeds deposited in form of FDs will be in favour of this Court.”

Gitanjali Gems Ltd is one of the key entities under investigation by the Enforcement Directorate (ED) in connection with the PNB fraud case, which led to Choksi being declared a fugitive economic offender.

Meanwhile, legal proceedings against Choksi continue overseas. Last month, a Belgian court cleared his extradition to India, stating there was no legal obstacle and that the charges were serious enough to warrant it.

The court noted that Choksi is not a Belgian citizen but a foreign national, and that his alleged offences include fraud, corruption, participation in a criminal gang, and the use of forged documents — all considered grave crimes under Belgian law.

However, the court excluded the charge of destruction of evidence (Section 201 of the Indian Penal Code), saying it is not recognised as a criminal offence in Belgium.

Choksi has since challenged the extradition ruling before Belgium’s Supreme Court earlier this week.