Taking major action in the Punjab National Bank (PNB) fraud case, the Mumbai Zonal Office of the Enforcement Directorate (ED) has handed over 4 flats of Project Tatva, Urja-A Wing located in Borivali East to the Liquidator. These flats were part of the attached properties of Mehul Choksi and his group.
ED has so far handed over properties worth Rs 310 crore located in Mumbai, Kolkata and Surat to the liquidator, so that they can be sold and the losses incurred by the victims, banks and other claimants can be compensated. Liquidator is actually a person or team to whom the court gives the responsibility to compensate the loss of the bank and the victims by selling the seized properties of a company.
What was revealed in ED investigation,
ED’s investigation revealed that between 2014 and 2017, Mehul Choksi, in connivance with his associates and PNB officials, issued fake letters of undertaking and foreign letters of credit. Due to this, PNB suffered a huge loss of about Rs 6,097 crore. Apart from this, he also did not repay the loan taken from ICICI Bank.
During the investigation, ED raided 136 places across the country and seized jewelery and valuables worth Rs 597 crore. Apart from this, assets worth Rs 2,565 crore, including properties, factories, vehicles, bank accounts, shares and jewelery located in India and abroad, were attached or confiscated. Three charge sheets have also been filed in this case.
To get money to the distressed banks ED And banks are taking action together
To get the money back to the victimized banks, ED and banks are jointly determining the value of the properties and have started the process of auctioning them. According to the court order, the money received from the auction will be deposited in the form of FD in PNB and ICICI Bank. The process of handing over the remaining properties to the liquidator and banks is also going on soon.
Also read: The fight over leadership in Karnataka Congress intensifies, supporters of Shivkumar faction reached Delhi, Siddaramaiah made strategy behind closed doors in Bengaluru.