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PNB Scam: The properties of PNB scam accused Mehul Choksi and Nirav Modi will now be auctioned. The PMLA court has approved the liquidation of these properties. The amount received from the auction will be returned to the lenders.
New Delhi. The way has been cleared for the auction of some properties of Gitanjali Gems Limited (GGL), a company linked to Nirav Modi and Mehul Choksi, accused in the famous scam of Rs 23,000 crore of Punjab National Bank. Taking forward the process of liquidation of the company’s properties, the PMLA court has allowed the liquidator of the company to evaluate and auction the unsecured properties worth more than Rs 46 crore. Nirav Modi is currently lodged in a British jail and Mehul Choksi is in custody in Belgium. The legal process to bring these two back to India is going on separately.
According to a report by Times of India, the 13 properties that have been approved for sale include four flats located in Borivali area of Mumbai. Their price each is estimated to be around Rs 2.6 crore. Additionally, a commercial unit and its associated 14 car parking spaces in the central wing of Bharat Diamond Bourse located at Bandra Kurla Complex will also be auctioned with a combined value of Rs 19.7 crore. Some properties will also be auctioned in Goregaon East, the value of which is said to be Rs 18.7 crore. Apart from this, silver bricks, semi-precious stones and machines present in the company’s plant located in Jaipur SEZ will also come under the ambit of auction.
Leaving property vacant is harmful
Issuing the order, Special Judge AV Gujarathi said that leaving properties vacant and without maintenance for long periods can damage their value. Therefore, it was necessary to give immediate order in this matter. The judge clarified that the liquidator is allowed to proceed with the auction after making a fresh valuation of the properties and the Enforcement Directorate (ED) will have to cooperate in the process.
FD will be made of the amount received from auction
The court also directed that the amount received from the auction be kept as fixed deposit in ICICI Bank, as this bank is the lead bank of the GGL consortium and NWL consortium. Both these consortiums are a group of banks which are the major creditors of the companies affected by the PNB scam. According to the decision, from the amount received from the sale, after deducting the expenses incurred on valuation and auction, the remaining amount will be deposited in the form of FD in favor of the court. Later this amount will be distributed among the affected lenders.
