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SBI moves to recover Rs 405 crore from Mehul Choksi, his family, companies

This is the first time the country's biggest bank's exposure has been revealed in the case involving Mehul Choksi, who is among the prime accused in the Rs 13,500 crore fraud in PNB

IANS  |  Mumbai 

Mehul Choksi
File photo of Mehul Choksi

In a new development, the of India (SBI) on Wednesday moved to recover loan outstandings of Rs 405 crore from absconding diamantaire Mehul Choksi, his family and companies.

This is the first time the country's biggest bank's exposure has been revealed in the case involving Choksi, who is among the prime accused in the Rs 13,500 crore fraud in the (PNB).

Significantly, the developments came two days after it became clear that Choksi had surrendered his Indian citizenship in favour of the nationality of Antigua & in the West
 

Choksi, his nephew Nirav Modi, several of their family members, employees and retired or serving top PNB executives and officials are accused in the PNB scam.

In a on Wednesday, the has demanded repayment of the loan amount sanctioned against various assets in Mumbai, Raigad, and belonging to Choksi, his family and group companies.

These include residential and commercial premises with multiple parking spaces, plus several plots of land in and Telangana, standing in their names.

The has already served notices to them at their "last known addresses" as on December 31, 2018, under section 13(2) of the Securitisation and Reconstruction of Financial Assets & Enforcement of Security Interest Act, 2002. But the notices returned undelivered.

The loan amount - described as a 'Working Capital Facility' - was extended to Gitanjali Gems Ltd, Bandra Complex, at Andheri East, premises in Bharat Diamond Bourse, a property in Santacruz and a plot in Maheshwaram Mandal in district of Telangana.

The said that in order to avail the loan amount, the borrowers (above) had pledged shares and mortgaged various properties on 'pari passu basis'.

These include properties in Cumballa Hill, Bandra Complex, Andheri, 27 plots measuring a total 9.60 hectares in Panvel, Raigad, 42 big and small plots of land in Balwant Nagar,

In Telangana, a total of 38.51 hectares of land in two plots situated in district are named.

Choksi is shown as a guarantor for the 12-odd defaulter loan accounts, and the late Guniyal Choksi are two security providers, all residing in Gokul Apartments,

The other companies include: and Ltd, Decent Investment and Ltd, and Multi Services Ltd, all located in Bandra Complex, and the Gems SEZ Ltd, Telangana.

The SBI has warned them to repay their outstanding dues within 60 days failing which the would proceed against them vis-a-vis the securities provided to recover the full dues.

In February 2018, SBI had said that the bank had no 'direct exposure' in the scam involving Nirav Modi, barring a Rs 1,360-crore due from PNB.

There was no mention of the Rs 405-crore Choksi loan default in the matter till now.

First Published: Wed, January 23 2019. 13:34 IST
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