ED Transfers Four Mumbai Flats Tied to Mehul Choksi for Victim Recovery
Mumbai Assets Linked to Choksi in PNB Fraud: ED Hands Over Flats to Liquidator
In a notable development in the high profile PNB fraud investigation, the Enforcement Directorate’s Mumbai Zonal Office announced on 21.11.2025 that it has handed over four residential units in “Project Tatva, Urja - A Wing, Dattapada Road, Borivali (East), Mumbai” to the liquidator of Gitanjali Gems Ltd., thereby enabling their monetisation for the benefit of victims, lenders and other legitimate claimants.
According to the agency’s statement, these four properties formed part of the assets attached during the probe into the fraudulent issuance of Letters of Undertaking (LoUs) and Foreign Letters of Credit (FLCs) by PNB between 2014 and 2017. The investigation attributes a wrongful loss of Rs. 6,097.63 crore to PNB, orchestrated by Mehul Choksi, his associates and certain bank officials.
With the transfer of these flats, ED says it has so far handed over movable and immovable assets worth approximately Rs. 310 crore (across Mumbai, Kolkata and Surat) to the liquidator of Gitanjali Gems.
The move signals a shift from mere attachment and seizure of assets to active monetisation aimed at restitution.
In its PMLA investigation, ED has revealed that beyond the LoUs and FLCs, Choksi had defaulted on a separate loan taken from ICICI Bank, amplifying the scale of malfeasance.
The probe also involved searches at more than 136 locations nationwide, resulting in the seizure of jewellery and valuables worth Rs. 597.75 crore belonging to the Gitanjali Group.
Further attachment orders cover additional assets valued at Rs. 1,968.15 crore, including overseas properties, factory premises, vehicles, bank accounts and equity holdings of listed companies as well as high-value jewellery. Combined, the total assets seized or attached so far in the case amount to Rs. 2,565.90 crore.
Three prosecution complaints (PCs) have also been filed by the agency.
The special PMLA court in Mumbai had earlier approved a joint strategy by ED and the victim banks (PNB and ICICI Bank) for valuation and auction of attached or seized assets. The court’s consent application allowed for proceeds from such auctions to be deposited in PNB or ICICI Bank.
According to officials, additional attached assets will be transferred to the liquidator or banks subject to further court orders.
On the extradition front, Mehul Choksi continues to fight his case in Belgium. He has appealed the 17.10.2025 ruling by the Antwerp Court of Appeal, which had upheld India’s extradition request, and is scheduled for a hearing on 09.12.2025.
Meanwhile, the Indian Government, via the Ministry of Home Affairs (MHA), has provided sovereign assurance to Belgian authorities that Choksi will be housed at Arthur Road Jail (Barrack No. 12) in Mumbai under conditions compliant with the standards of the European Court of Human Rights (ECHR).
The assurance covers non-solitary confinement, adequate ventilation, bedding, sanitation, medical infrastructure (including a 20-bed jail hospital and access to Sir JJ Hospital), access to legal counsel, family visits, phone calls, newspapers, television, and open-air exercise.
This latest transfer of assets signals a renewed urgency in the monetisation phase of the PNB fraud recovery. It underscores the ED’s focus on not just asset-freezing, but realising value for harmed lenders and claimants.
That said, the gap remains large: while the fraud loss is pegged at over Rs. 6,097 crore, the assets realised or handed over so far amount to approximately Rs. 310 crore, and attached/seized assets total roughly Rs. 2,566 crore.
For legal practitioners, banking-fraud specialists and insolvency/liquidation stakeholders, this development is noteworthy for a few reasons. First, it illustrates how attachment can translate into transfers to liquidators in high value fraud-liquidation scenarios. Second, it signals the importance of co-ordination between law enforcement, banks and insolvency professionals to advance victim restitution. And third, the extraterritorial dimension (Mehul Choksi’s Belgium appeal) serves as a reminder of the cross border complexity in large white collar cases.
The road ahead will involve moving from the structural stage to the value-realisation stage.
Stakeholders are expected to closely monitor how remaining attached assets are monetised, how proceeds are allocated among claimants, and how the extradition process, and its timeline impacts recoveries.