Flats linked to Gitanjali Gems promoters set for auction in October

In a move to recover funds for creditors, the liquidator of the scam-tainted Gitanjali Gems Limited has put up for e-auction three luxury flats in Mumbai’s Santacruz East, previously linked to the company’s promoters, the Choksi family. The auction is part of the liquidation process of the company that collapsed following the massive Punjab National Bank (PNB) fraud.

The properties, identified as Flats No. 101-103, 201-203, and 301-303 on the first, second, and third floors of ‘Sapphire Heights’ (formerly Kheni Tower) in Jogani Complex, Kalina, will be auctioned individually. Each flat, with a merged carpet area of 3,130 sq. ft., carries a reserve price of ₹10,14,48,934. To participate, serious bidders must deposit a substantial earnest money of ₹1,15,00,000 per flat.

Auction details and correction

The e-auction is scheduled for October 7, 2025, between 1:30 PM and 3:30 PM on the Baanknet platform. The liquidator, Santanu T Ray, had to issue a corrigendum to the original notice after a major error was discovered. The initial notice had mistakenly swapped the reserve price and earnest money deposit (EMD) amounts, significantly understating the financial commitment required to bid. The corrected notice confirms the high value of the assets under sale.

Additional assets on the block

Besides the promoter-linked flats, the auction will also include:

• Option D: Movable inventories, including furniture and fixtures, from inside the flats (Reserve Price: ₹6,00,400; EMD: ₹60,000).
• Option E: Two combined commercial units (No. 801 & 802) on the 8th floor of Prasad Chambers, Opera House, with a total built-up area of 1,760 sq. ft. (Reserve Price: ₹6,77,67,450; EMD: ₹60,70,000).

The assets were released by the Directorate of Enforcement (ED) and form part of the liquidation estate.

Background: The Gitanjali Gems insolvency saga

The downfall of Gitanjali Gems was swift and dramatic following the unearthing of the PNB loan fraud in early 2018.

• CIRP Initiation: The Mumbai Bench of the National Company Law Tribunal (NCLT) admitted the company for Corporate Insolvency Resolution Process (CIRP) on January 15, 2020, following a petition filed by ICICI Bank.
• Failed Resolution: Despite efforts, no viable resolution plan was received for the company. With the 270-day CIRP timeline extended but ultimately unsuccessful, the NCLT ordered the liquidation of Gitanjali Gems Ltd. on February 7, 2024, appointing Mr. Santanu T Ray as the liquidator.
• Massive Claims: The company admitted a total of ₹11,386 crore in claims from financial creditors and ₹673 crore from operational creditors, underscoring the enormous scale of its debt.

Key information for bidders

• Inspection Deadline: Physical inspection of assets is mandatory and must be completed by September 30, 2025, by prior appointment only.
• EMD Submission: The last date for qualified bidders to submit the EMD is October 4, 2025.
• Terms: The sale is on an “as is where is” basis, and the liquidator reserves the right to cancel the process without reason.

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