The Enforcement Directorate (ED), Mumbai Zonal Office, has taken another significant step in the ongoing restitution efforts linked to the Punjab National Bank (PNB) fraud case involving fugitive jeweller Mehul Choksi. On 21 November 2025, the agency formally handed over four residential flats in Project Tatva, Urja – A Wing, Datthapada Road, Borivali (East), Mumbai to the court-appointed liquidator. These properties had been earlier attached under the Prevention of Money Laundering Act (PMLA).
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Officials said the transfer will enable the liquidator to initiate monetisation of these assets, thereby advancing the process of compensating victim banks, secured creditors and other legitimate claimants affected by the multi-crore banking fraud.
₹310 crore worth of assets handed over so far
As part of its broader restitution drive, the ED has already facilitated the handover of immovable and movable assets worth approximately ₹310 crore across Mumbai, Kolkata and Surat. These belong to the entities and individuals connected with Mehul Choksi and the Gitanjali Group.
LoU–FLC fraud caused ₹6,097.63 crore loss to PNB
ED’s investigation under PMLA established that Mehul Choksi, in collusion with PNB officials and close associates, fraudulently obtained Letters of Undertaking (LoUs) and Foreign Letters of Credit (FLCs) between 2014 and 2017. The illegal guarantees enabled overseas credit purchases, ultimately causing a wrongful loss of ₹6,097.63 crore to PNB.
The probe also revealed that Choksi had availed loans from ICICI Bank, on which he defaulted as well.
Searches at 136 locations; jewellery worth ₹597.75 crore seized
In one of its largest coordinated operations, the agency conducted searches at more than 136 premises across India. These searches resulted in the seizure of valuables and jewellery worth ₹597.75 crore belonging to the Gitanjali Group.
Separately, the ED attached movable and immovable properties valued at ₹1,968.15 crore, which include:
- Residential and commercial properties in India and abroad
- Vehicles
- Bank accounts
- Factories and manufacturing units
- Listed company shares
- High-value jewellery and stock
Together, assets worth ₹2,565.90 crore have been either attached or seized in the case. The ED has also filed three Prosecution Complaints before the Special PMLA Court.
ED–Banks adopt ‘common stand’ to speed up restitution
To accelerate the return of assets to victim banks, the ED and lending banks adopted a joint approach. They submitted a combined consent application before the Hon’ble Special PMLA Court, Mumbai.
The court permitted:
- ED to facilitate valuation and auction of attached/seized properties in coordination with liquidators of the various Gitanjali Group companies.
- Deposit of sale proceeds from these auctions directly into PNB/ICICI Bank accounts as Fixed Deposits, pending further judicial directions.
Officials said this coordinated mechanism ensures transparency, avoids duplication of efforts, and expedites financial recovery.
Remaining properties to be handed over in phases
In compliance with further directions of the Special Court, the agency is continuing the phased handover of remaining assets to the concerned liquidators and banks. The ED emphasised that these ongoing transfers are critical to securing timely recovery for victim institutions.
The agency termed the case a benchmark example of coordinated enforcement, financial investigation and asset recovery in a transnational fraud of significant scale.
