Greeva Garg –
Published on: August 20, 2021, at 09:36 IST
A Special Court in Mumbai has allowed the restoration of Nirav Modi’s confiscated properties to Punjab National Bank (PNB).
PNB, which faced the brunt because of the alleged fraud committed by Nirav Modi, will be able to recover at least part of its dues, as the Court has ordered to release part of the properties belonging to the fugitive diamond trader worth ₹440 crore, which were mortgaged by Modi’s firms with the nationalised bank.
The order was passed by V C Barde, special Judge for Prevention of Money Laundering Act (PMLA).
Nirav Modi and his uncle Mehul Choksi are accused of committing a Rs 14,000 crore scam by obtaining credit facilities fraudulently from the PNB.
The PNB in July 2021 had filed multiple applications before special PMLA court seeking release of the properties mortgaged with the bank against the credit facilities extended to Nirav Modi’s two firms, Firestar Diamond International Private Ltd (FDIPL) and Firestar International (FIL).
The Court allowed the two pleas seeking the release of properties of FIL worth Rs 108.3 crore and those of FDIPL worth Rs 331.6 crore.
“The claimant bank’s loss has been recognized by the Debt Recovery Tribunal (DRT) who has passed judgments in their favour,” the court observed.
During probe by the Enforcement Directorate (ED), he confiscated several properties owned by Nirav Modi though his family members and these companies. Several of the properties were confiscated after he was declared a ‘fugitive economic offender’ in December 2019.
The bank and lenders’ consortium had objected to the confiscation, as the properties had been mortgaged with them when Modi and Choksi availed of Letters of Undertaking (LOUs).
The court has now also directed the PNB to give an undertaking to return the properties or their value if directed in future.
Nirav Modi is currently lodged in a UK jail and is fighting extradition to India.