Mumbai A special court on Thursday allowed auction of 13 properties of Gitanjali James Limited, a company of fugitive diamond merchant Mehul Choksi, the main accused in the Punjab National Bank (PNB) loan fraud case. Justice S. of Special Court, hearing cases related to the Prevention of Money Laundering Act (PMLA). Accepting the petition of the official liquidator, M. Menge said that if the property is kept empty without maintenance, it will definitely reduce its value.
Which property will be auctioned
In the 13-property of the auction of Gitanjali James by the court of Mumbai, 7 flats in Kheni Tower in Santa Cruz, Mumbai, a commercial unit in Bharat Diamond Bores of Bandra-Kurla Complex (BKC), a commercial unit in Diamond Park in Surat, Gujarat, in Diamond Park, Gujarat 4 office units and a shop there are also included there. The court said that the money received from the auction will be deposited as FD (in favor of a special court) after subtracting all the expenses made for the purpose of valuation/auction.
In September last year, permission for valuation of safe properties was received
The Committee of Creditors (COC) had launched liquidation proceedings through a proposal of April 2019 and Shantanu Ray was appointed by the National Company Law Tribunal (NCLT). The Special Court in September last year allowed the liquidator to validate the safe properties of Gitanjali James. The liquidator then moved the court for valuation and auction of unsafe properties. On behalf of ED, Special Public Prosictor Kavita Patil said that the agency has no objection to the petition.
12,636 crore is scam
According to the ED, this fraud billionaire jeweler Nirav Modi and Gitanjali James’s promoter were done by his uncle Mehul Choksi. Both of them are accused of obtaining a letter of undertaking (LOU) and Foreign Credit Letter (FLC) based on fake claims of Rs 12,636 crore issued in favor of the foreign branch of Indian banks.
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