PNB fraud: ED attaches Mehul Choksi’s assets worth ` 14.45 cr

In a fresh round of attachments in the Punjab National Bank (PNB) case, the Enforcement Directorate (ED) issued a provisional order attaching assets worth Rs 14.45 crore of Gitanjali Group of companies and its director Mehul Choksi.

“The attached assets are in the form of immovable properties comprising of a flat admeasuring 1460 square feet at O2 Tower, located at Goregaon, Mumbai and movable assets in form gold, platinum jewellary, diamond stones and pearl-silver necklaces, watches and Mercedes Benz car held in name of Gitanjali Group of companies and its director Mehul Choksi,” the ED said on Thursday.

The ED initiated investigation in money laundering case against Choksi and others on February 15, 2018 under the provisions of Prevention of Money Laundering Act (PMLA), 2002 on the basis of FIR registered by Central Bureau of Investigation (CBI). The accused have been charged for cheating PNB in connivance with certain bank officials by fraudulently getting the Letter of Undertaking (LoU) causing wrongful loss to the bank.

The ED probe revealed that the fraud was committed by fraudulently getting the LOUs issued and got the FLCs (foreign letter of credit) enhanced without following prescribed procedure and caused wrongful loss to bank.

“During probe under PMLA, it is revealed that PNB officials in connivance with Choksi, Gitanjali Gems and others originally issued FLCs for smaller amount within the sanctioned limit and once FLC number was generated. Same number was used for amendment by way of enhancement of FLC by way of increase in the amount and such enhancement of amount was done at 4-5 times higher value of the original FLC amount and such amendments were done outside the CBS system,” the agency said.