Mumbai: In a major development in the ₹23,000 crore Punjab National Bank fraud case, a special court in Mumbai has cleared the auction of 13 unsecured properties linked to fugitive diamantaire Mehul Choksi, including residential flats, industrial units, and silver bricks collectively valued at around ₹46 crore.
The order, passed on November 4, allows Gitanjali Gems Ltd, the flagship company of Choksi’s group, to go ahead with the valuation and subsequent auction of these assets. The court’s decision marks a significant step in the ongoing efforts to recover dues from entities associated with Choksi, who remains abroad and is facing extradition proceedings.
According to details shared with the court, the assets include four residential flats in Borivali worth around ₹2.6 crore, a commercial unit at Bharat Diamond Bourse in Bandra-Kurla Complex with 14 car parking slots valued at nearly ₹19.7 crore, and several industrial galas in Goregaon (East) and Udyog Nagar. Additionally, silver bricks, semi-precious stones and machinery located at Gitanjali’s Jaipur facility have also been cleared for auction.
The court has clarified that only unsecured properties will be sold — meaning those not claimed by secured creditors such as banks or financial institutions. Assets under secured claims will remain outside the auction process until ownership and liability are determined after the trial.
Significantly, the court directed that the proceeds from the auction be deposited as fixed deposits with ICICI Bank, which serves as the lead bank for both the Gitanjali and NWL consortiums. The deposits will remain in the name of the special court, after deducting valuation and auction expenses.
Mehul Choksi, who has been declared a fugitive economic offender, continues to face legal battles abroad. Recently, a Belgian court approved his extradition to India, ruling that there were no legal barriers to the process, though it excluded the charge of destruction of evidence under Section 201 of the IPC, which is not recognised under Belgian law. Choksi has since appealed the decision in Belgium’s Supreme Court.
The court’s move is being viewed as a tangible effort toward asset recovery in one of India’s largest banking frauds. Officials involved in the case said the valuation process will begin soon, followed by a public auction under the court’s supervision. The total recovery amount will depend on the final sale prices achieved.
The development underscores the tightening legal and financial net around Choksi, who fled India in 2018 following revelations of the multi-crore scam. With the auction process now approved, authorities are expected to move swiftly to monetise the assets and secure the proceeds pending further adjudication.
