Mumbai court clears auction of Mehul Choksi-linked Gitanjali Gems assets

The Mumbai special court directed that proceeds from the auction, estimated at around ₹46 crore, be placed in a fixed deposit under the court's name until trial concludes

A special court in Mumbai has permitted Gitanjali Gems Ltd to undertake valuation and auction of 13 unsecured properties linked to fugitive diamantaire Mehul Choksi, reported NDTV.

 

In its order dated November 4, the court directed that proceeds from the sale be parked in fixed deposits (FDs) under the court’s name.

 

“The sale proceeds shall be deposited as FDs after deducting all associated costs and expenses incurred for valuation or auction. The sale proceeds deposited in the form of FDs will be in favour of this court,” the order stated.

 

The court clarified that only unsecured properties will be auctioned and not those claimed by secured creditors. Ownership and confiscation of proceeds will be determined after the trial concludes.

 

What will be auctioned?

 

The assets, estimated at around ₹46 crore, include:

 

• Four flats in Borivali valued at ₹2.6 crore
• A commercial unit at Bharat Diamond Bourse in Bandra-Kurla Complex with 14 parking spaces, valued at ₹19.7 crore
• Six industrial galas in Goregaon East and one in Udyog Nagar, Goregaon
• Silver bricks, semi-precious stones, and machinery from the company’s Jaipur facility

 

The valuations are based on assessments conducted in 2018, the report said.

 

According to The Indian Express, the National Company Law Tribunal (NCLT)-appointed liquidator moved the court last month seeking permission to enter, value, and auction unsecured properties belonging to Gitanjali Gems.

 

The court granted approval, directing the process be conducted “by following due process under applicable law".

 

Judge AV Gujarati presided over the order, which permits Gitanjali Gems and its liquidator to open FDs for sale proceeds with ICICI Bank, the lead bank for both the GGL Consortium and NWL Consortium.

 

Extradition proceedings against Mehul Choksi

 

Gitanjali Gems remains a key entity in the Enforcement Directorate’s (ED) probe into the ₹23,000 crore Punjab National Bank (PNB) fraud case.

 

Last month, a Belgian court approved Choksi’s extradition to India, stating there was “no legal barrier” to his return. The offences listed included fraud, corruption, and use of forged documents.

 

However, the court noted that “destruction of evidence” is not recognised as a separate offence under Belgian law and could not form grounds for extradition.

 

Choksi has since challenged the extradition order before Belgium’s Supreme Court.

 

The PNB fraud case

 

The PNB fraud, estimated at ₹23,000 crore, involved fraudulent letters of undertaking issued to firms owned by Mehul Choksi and his nephew Nirav Modi between 2011 and 2018.

 

Both fled India before the case surfaced in early 2018. While Nirav Modi remains imprisoned in the UK pending extradition, Choksi has been residing in Antigua and Barbuda, claiming citizenship there.