A special court under the Prevention of Money Laundering Act (PMLA) has permitted the liquidator of Gitanjali Gems Ltd, the defunct jewellery company linked to fugitive businessman Mehul Choksi, to value and auction its unsecured assets. The court directed that all sale proceeds be deposited in fixed deposits under the court’s name until the money laundering case reaches its conclusion.
The order, passed by Special Judge A.V. Gujarathi on November 4, clarified that only unsecured properties—those not claimed by secured creditors—may be auctioned. The court also maintained that the Enforcement Directorate’s (ED) attachment of the assets will remain in effect, and that ownership or confiscation of the proceeds will be decided only after the trial concludes.
The application was filed by liquidator Shantanu Ray, who was appointed by the National Company Law Tribunal (NCLT) in February this year. The ED raised no objection to the proposed valuation and sale.
Gitanjali Gems is one of the central entities in the ₹13,000-crore Punjab National Bank (PNB) fraud case, in which Mehul Choksi has been declared a fugitive economic offender.
The assets approved for valuation and auction include:
- Four residential flats in Borivali East
- Office premises at the Bharat Diamond Bourse, Bandra-Kurla Complex
- Four industrial units in Virwani Industrial Estate, Goregaon East
- Silver bricks, semi-precious stones, and jewellery-making machinery located in the Jaipur Special Economic Zone
According to the court’s directive, “the sale proceeds, after deducting expenses, shall be deposited in fixed deposits with ICICI Bank in the name of this court.”
The order allows the liquidation process to progress alongside the ongoing money-laundering proceedings, enabling monetisation of certain defunct assets of the Gitanjali Group while ensuring that the funds remain secure under judicial supervision until a final verdict is reached.
