Court Sanctions Auction of Gitanjali Gems Properties Amid PNB Scam Debacle

A special Mumbai court approved the sale of 13 properties belonging to Gitanjali Gems Limited, associated with fugitive trader Mehul Choksi, the main suspect in a major PNB fraud case. The decision aims to prevent devaluation through non-maintenance. Sale proceeds will be managed via fixed deposits for the court.

A Mumbai special court has given the green light to auction 13 properties owned by Gitanjali Gems Limited, tied to the infamous diamond trader Mehul Choksi. Choksi is the primary suspect in the Punjab National Bank (PNB) loan fraud scandal.

According to Judge S M Menjoge, who presides over cases under the Prevention of Money Laundering Act, neglecting these properties would depreciate their value. As such, the official liquidator's plea to appraise and auction them was approved.

The Enforcement Directorate expressed no objections, allowing the auction proceeds to be placed in fixed deposits with ICICI Bank, under court supervision. Choksi remains in Antigua, with his latest legal representation citing health issues as a concern.

(With inputs from agencies.)