Enforcement Directorate (ED) issued a Provisional Attachment Order, attaching assets worth Rs 14.45 crores of Gitanjali Group of companies and its director Mehul Choksi in PNB Bank Fraud case. The attached assets are in the form of immovable properties comprising of a flat admeasuring 1460 sq. ft at O2 Tower, located at Goregaon, Mumbai and movable assets in form Gold, Platinum Jewellary, Diamond Stones & Pearl-Silver Necklaces, Watches and Mercedes Benz car held in name of Gitanjali Group of companies and its director Mehul Choksi.
ED had initiated investigation in PNB scam against Mehul Choksi, Gitanjali Gems and others under the provisions of PMLA, 2002 on the basis of FIR registered by Central Bureau of Investigation under sections 120-B r/w 420 of IPC, 1860 read with section 13(2) read with section 13(1)(d) of PC Act, 1988. It was alleged that Mehul Choksi, Gitanjali Gems and others have committed the offence of cheating against Punjab National Bank in connivance with certain bank officials by fraudulently getting the LOUs issued and got the FLCs (foreign letter of credit) enhanced without following prescribed procedure and caused a wrongful loss to the bank.
During investigation under PMLA, it is revealed thatPNB bank officials in connivance with Mehul 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 and hence it was not captured in the books of bank. Further it is also found that branchwas holding documents of original FLC amount and no import documents of such increased amount were found in the branch and much of fraudulent FLCs payments have gone to liquidate the overseas exporter’s liability arising out of earlier FLCs/discounting of bills
Earlier ED has already attached properties worth more than Rs 2,550 crores and now ED has attached assets worth Rs 14.45 crores of Gitanjali Group of Companies and its director Mehul Choksi.
