Mumbai Court Permits ICICI Bank to Put Rs 33 Crore Choksi Rent in Fixed Deposit

A special court in Mumbai has allowed a plea filed by ICICI Bank to place rental income amounting to Rs 33.02 crore, collected from an attached property linked to businessman Mehul Choksi, into a fixed deposit.

The funds originated from rental income generated by a store located in a Kolkata mall. The property had been attached by the Enforcement Directorate in connection with an ongoing money laundering case registered against Choksi.

ICICI Bank had approached the court seeking permission to transfer the accumulated sum, which was deposited in another bank's account, along with future rental earnings accruing until the completion of the property's auction. The bank requested that the amount be moved into a fixed deposit maintained with ICICI Bank under the name of the court.

The Enforcement Directorate gave a no-objection to the request, subject to the condition that the funds should not be transferred or used for any other purpose until the final disposal of the case.

While allowing the bank's plea, the special court observed that leaving the large sum idle in the account would cause significant financial loss. The court noted that a huge amount of Rs 33.02 crore was lying in the account and that keeping it in fixed deposits would ensure accrued interest benefits the rightful beneficiary, who would otherwise suffer a loss of interest.

The court imposed specific conditions on the arrangement, directing that the fixed deposit must be created strictly in the name of the Special Court, PMLA Special Case No. 9/2018. It further specified that the deposit shall not be subject to any lien, set-off, appropriation, or adjustment by ICICI Bank against any outstanding dues claimed by the lender.