Mumbai: A special Prevention of Money Laundering Act (PMLA) court has allowed ₹33.02 crore in rental and other receipts linked to fugitive businessman Mehul Choksi to be placed in a fixed deposit (FD) pending the final outcome of proceedings in the alleged ₹13,000-crore Punjab National Bank (PNB) fraud case. The money relates to a portion of Kolkata’s Axis Mall that was attached by the Enforcement Directorate (ED) during its investigation into the money-laundering case.
Special Judge S K Karhale, in an order passed on Tuesday, permitted ICICI Bank to transfer ₹33.02 crore lying in a Kotak Mahindra Bank account into an FD held in favour of the court. The amount comprises rental income and amenities charges received from Lifestyle International Pvt Ltd. Future rental income, amenities charges and licence fees accruing from the property until its auction can also be transferred to the fixed deposit under the court’s directions.
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ICICI Bank had approached the court seeking permission to transfer the funds into an FD. The ED opposed the application, arguing that the money should not be transferred for any purpose until the final disposal of the case.
The court, however, observed that keeping such a substantial amount idle could result in the loss of interest that could otherwise accrue on the funds. Considering the circumstances, it held that the amount could be placed in an FD subject to appropriate conditions.
The court directed that the ₹33.02 crore, along with future rental income, amenities charges and licence fees, be transferred to the FD. The funds will remain subject to the final outcome of the pending proceedings.
The order makes it clear that placing the money in an FD does not amount to a final determination of ownership or entitlement. ICICI Bank cannot use the fixed deposit as security or adjust the amount against any dues it may claim. The principal amount and interest accrued on it cannot be withdrawn, encashed, pledged or transferred without prior permission from the court.
The court has also directed that the FD be automatically renewed upon maturity. This ensures that the funds remain protected and continue to earn interest while the legal proceedings are pending.
The order further preserves the ED’s objections concerning the nature of the property, ICICI Bank’s alleged charge over the rental receivables and the bank’s claimed priority or entitlement to the money. Therefore, the transfer of the funds into an FD does not settle any of these legal disputes.
The Axis Mall property is linked to Choksi’s Gitanjali Group. The ED had attached a portion of the mall in 2018 along with several other properties linked to Choksi and companies controlled by him as part of its investigation into the PNB fraud. At the time, the agency had attached 41 properties with an estimated value of around ₹1,217 crore.
Lifestyle and Home Centre, operated by the Landmark Group, occupied space at the mall under a lease from Choksi’s Gitanjali Gems. The rental and other receipts from the property subsequently became part of the proceedings concerning the attached asset.
The PNB fraud case involves allegations that Choksi, his nephew Nirav Modi and certain Punjab National Bank officials conspired to defraud the bank. According to the allegations, fraudulent Letters of Undertaking were issued to raise credit from overseas branches of Indian banks.
Choksi and Modi are among the key accused in the case. Both have been outside India and have faced separate legal proceedings relating to their extradition. Modi has been contesting extradition proceedings in the United Kingdom, while Choksi has been involved in extradition-related proceedings in Belgium.
The latest court order allows the ₹33.02 crore rental-related amount to generate interest instead of remaining idle during the litigation. However, the ultimate ownership, entitlement and treatment of the funds will depend on the final outcome of the pending proceedings.
About the author — Suvedita Nath is a science student with a growing interest in cybercrime and digital safety. She writes on online activity, cyber threats, and technology-driven risks. Her work focuses on clarity, accuracy, and public awareness.
