Court allows return of Nirav Modi’s confiscated assets worth Rs 440 crore to PNB

Nirav Modi is presently lodged successful a UK jailhouse and is warring extradition to India. (Reuters/File image)

A peculiar tribunal present has allowed “restoration” of properties worthy Rs 440 crore of fugitive jeweler Nirav Modi, confiscated by the Enforcement Directorate (ED), to the Punjab National Bank (PNB).

Nirav Modi and his uncle Mehul Choksi are accused of committing a Rs 14,000 crore scam by obtaining recognition facilities fraudulently from the PNB, a nationalist assemblage bank.

The bid was passed by V C Barde, peculiar justice for Prevention of Money Laundering Act, past week. The elaborate bid became disposable connected Thursday.

The PNB successful July 2021 had filed aggregate applications seeking merchandise of the properties mortgaged with the slope against the recognition facilities extended to Nirav Modi’s 2 firms, Firestar Diamond International Private Ltd (FDIPL) and Firestar International (FIL).

The applications were filed by PNB arsenic an idiosyncratic claimant and besides arsenic pb slope of the PNB consortium and authorized typical of the UBI consortium. The tribunal allowed 2 pleas seeking the merchandise of properties of FIL worthy Rs 108.3 crore and those of FDIPL worthy Rs 331.6 crore.

“The claimants’ (banks) quantifiable nonaccomplishment has been recognized by the DRT (Debt Recovery Tribunal) who has passed judgments successful their favor,” the tribunal noted.

During its probe, the ED attached respective properties owned by Nirav Modi though his household members and these companies. Several of the properties were confiscated aft helium was declared a “fugitive economical offender” successful December 2019.

The slope and lenders’ consortium had objected to the confiscation, arsenic the properties had been mortgaged with them erstwhile Modi and Choksi availed of Letters of Undertaking (LOUs).
The tribunal has present besides directed the PNB to springiness an undertaking to instrumentality the properties oregon their worth if directed successful future.

Nirav Modi and Choksi on with immoderate slope officials are accused of cheating the Punjab National Bank of Rs 14,000 crore by obtaining LoUs fraudulently. LoUs are issued arsenic a warrant for the applicant to question loans from overseas Indian banks.

Nirav Modi is presently lodged successful a UK jailhouse and is warring extradition to India.