The Bombay High Court on Thursday sought a response from the Punjab National Bank (PNB), fugitive diamond merchant Nirav Modi, and others on a plea filed by the Enforcement Directorate (ED). The investigation agency challenged an order of a special court, which permitted the release of nine attached properties worth Rs 424 crore to the bank in the loan fraud case. While the investigation agency claimed it ought to get the right over the property, the PNB said they were entitled to custody since they were the creditors. The special court, designated under the Prevention of Money Laundering Act (PMLA), last year in October allowed the agency to confiscate 12 properties worth over Rs. 500 crores, except for nine properties. The PNB was allowed to seize these assets. Weeks later in November, the court modified its order and entitled PNB to a few more assets. On Thursday, a division bench of Justice Sunil B Shukre and Justice Kamal R Khata heard a plea in the high court, challenging the special court's orders. Valuables including jewellery, coins, and watches belonging to Nirav Modi worth Rs. 40.83 crores are a part of the seized assets. Nirav Modi's sister Purvi's flat in Mumbai, a flat in New York of his wife, Ami, artifacts, and other movable assets at Nirav Modi's Worli house are among the assets that the bank was allowed to confiscate. The Enforcement Directorate's lawyer argued that the creditor was not entitled to the unsecured assets, and the central agency had "the first right over such unsecured or freehold assets". However, the PNB submitted that the bank gave Nirav Modi and his company a huge loan. Due to the non-payment of dues, the bank's financial condition was adversely affected, it said. The PNB relied on the order of the Debt Recovery Tribunal (DRT), claiming the tribunal had awarded certain assets of Nirav Modi’s firm to the bank. The high court has posted the matter for a final hearing after three weeks.
