Court Approves Auction of Gitanjali Gems' Properties Linked to PNB Fraud
A special court in Mumbai has approved the auction of several properties belonging to Gitanjali Gems, the jewellery company linked to fugitive businessman Mehul Choksi. The assets include residential flats, office premises, and industrial units. The sale proceeds will be held in fixed deposits under the court’s name until the money-laundering case concludes.
Pnb FraudGitanjali GemsMehul ChoksiAuctionPropertiesReal Estate MumbaiNov 08, 2025
In an order dated November 4, special judge AV Gujarathi approved the application of liquidator Shantanu Ray, who was appointed by the National Company Law Tribunal (NCLT) in February this year. Gitanjali Gems is a central entity in the Enforcement Directorate’s (ED) probe into the ₹13,000-crore Punjab National Bank (PNB) fraud case, in which Choksi has been declared a fugitive economic offender.
Ray sought permission to dispose of unsecured properties currently under attachment in the ED case. The ED informed the court that it had no objection to the proposed valuation and sale.
The properties listed for auction include four residential flats in Borivali East; office premises in the Bharat Diamond Bourse at Bandra-Kurla Complex; four industrial units in Virwani Industrial Estate, Goregaon East; and silver bricks, semi-precious stones, and jewellery-making machinery located in the Jaipur Special Economic Zone. While several of these assets are held in the name of Gitanjali Gems Ltd, others belong to associated group companies such as Gitanjali Exports Corporation Ltd.
The court made it clear that only unsecured assets, those not claimed by secured creditors, may be auctioned. It also emphasized that the ED’s attachment over the properties remains intact, and the ownership and confiscation of the proceeds will be determined only after the trial.
The sale proceeds, after deducting expenses, shall be deposited in fixed deposits with ICICI Bank in the name of this court. The funds must remain under judicial custody as required under Sections 8(7) and 8(8) of the PMLA.
This order enables the liquidation process to move forward alongside the ongoing money-laundering proceedings, allowing certain assets of the defunct Gitanjali group to be monetized while safeguarding the proceeds until the case is finally decided.
Frequently Asked Questions
What is the PNB fraud case?
The PNB fraud case involves a ₹13,000-crore scam where diamond merchants, including Mehul Choksi, allegedly defrauded Punjab National Bank through unauthorized letters of undertaking (LoUs).
Who is Mehul Choksi?
Mehul Choksi is a fugitive businessman and the former chairman of the Gitanjali Group, a leading jewellery company in India. He is a key suspect in the PNB fraud case.
What properties are being auctioned?
The properties include four residential flats in Borivali East, office premises in the Bharat Diamond Bourse at Bandra-Kurla Complex, four industrial units in Virwani Industrial Estate, Goregaon East, and silver bricks, semi-precious stones, and jewellery-making machinery in the Jaipur Special Economic Zone.
Who is the liquidator of Gitanjali Gems?
Shantanu Ray is the liquidator of Gitanjali Gems, appointed by the National Company Law Tribunal (NCLT) in February 2023.
What will happen to the sale proceeds?
The sale proceeds, after deducting expenses, will be deposited in fixed deposits with ICICI Bank in the name of the court. The funds will remain under judicial custody until the money-laundering case concludes.
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