Court orders release of 18 properties linked to Nirav Modi, firms

The bank as an individual claimant and as a representative of a consortium of banks had sought claim to certain properties attached by the Enforcement Directorate (ED) stating that they had suffered losses of over Rs 7,000 crore due to alleged acts of the accused, of obtaining fraudulent Letters of Understanding (LoUs).

A plea to declare Nirav Modi a fugitive economic offender is also pending.

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A SPECIAL court on Wednesday directed that 18 properties valued at over Rs 71 crore, linked to absconding diamond merchant Nirav Modi and his firms in connection with the fraud at Punjab National Bank (PNB), be released in favour of the bank and liquidators.

The bank as an individual claimant and as a representative of a consortium of banks had sought claim to certain properties attached by the Enforcement Directorate (ED) stating that they had suffered losses of over Rs 7,000 crore due to alleged acts of the accused, of obtaining fraudulent Letters of Understanding (LoUs).

The bank sought release or restoration of properties which are secured, mortgaged, hypothecated and exempted from confiscation. These include 18 properties like valuables lying with custodian of Bharat Diamond Bourse received from Hong Kong and Dubai, valued at over Rs 40 crore, 16 pieces of jewellery which were part of the display stock at a five star hotel, office spaces in Kurla and eight cars including a Bentley worth Rs 26 lakh.

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The court directed that the properties as per the respective category they fall under be released to the liquidator appointed for two firms of Modi, Firestar International Limited and Firestar Diamond International Limited and to PNB.

The court gave directions for an undertaking to be given at the time of the restoration of the properties to proceed as per provisions of law.

Modi is currently contesting extradition proceedings in the UK after the authorities sought him to be extradited to India to face criminal charges related to the PNB case.

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