PNB seeks restoration of Nirav Modi's firms' assets confiscated by ED; moves PMLA court

Seeking restoration of the assets of two firms owned by fugitive diamond merchant Nirav Modi, the Punjab National Bank (PNB) on Wednesday moved multiple applications before a special Prevention of Money Laundering Act (PMLA) court. The bank has sought restoration of assets of Nirav Modi's firms confiscated by the Enforcement Directorate (ED). The application was submitted before special judge V C Barde under the relevant provisions of the PMLA. 

The move from the bank came after ED confiscated Nirav Modi's assets worth over ₹329.66 crore under the fugitive economic offenders law. The confiscated property includes assets of Firestar Diamond International Private Limited and Firestar International Limited, firms owned by Modi. Earlier on July 1, the fugitive diamantaire's sister, Purvi, had remitted a sum of Rs 17.25 crore from her bank account in the UK to that of the Indian government. Purvi claimed that she was unaware of the bank account opened by her brother and she informed the ED as soon as she learned about it.

ED transfers assets worth Rs 8441.5 cr

Last month, the ED had transferred attached assets worth Rs 8441.5 crore to several Public Sector Banks who had lent money to Vijay Mallya, Nirav Modi, and his uncle Mehul Choksi. The three businessmen have allegedly defrauded the Indian PSBs to the tune of Rs. 22,585.83 crore. The action was taken after an FIR was filed by the Central Bureau of Investigation (CBI). Another development was taken up by ED where it attached/seized assets worth Rs 18,170.02 cr, including properties worth Rs 969 cr located in foreign countries. 

PNB fraud case

Diamantaire Nirav Modi was declared a 'Fugitive Economic Offender' by a special court vide its order dated 05.12.2019. Total 12 Provisional Attachment Order (PAO) were issued and all were confirmed by the Adjudicating Authority. The total properties then attached were Rs. 1898.12 Crore approximately by the ED. Also, one Original Application (OA) was filed for the seizure of properties worth Rs. 489 Crore.

In June 2020, the court ordered the confiscation of freehold properties of Nirav Modi amounting to Rs. 329.67 crore. Thereafter, the court passed another order for restoration of properties worth Rs 1060.60 Crore to the Punjab National Bank, defrauded by Nirav Modi and his uncle Mehul Choksi, the former being the prime accused. One more application requesting confiscation of remaining properties worth Rs 928.91 Crore was also filed. 

(With PTI inputs)