ED Attaches Fugitive Nirav Modi's Assets Worth Rs 29.75 Crore In PNB Fraud Case

New Delhi: The Enforcement Directorate (ED), probing the Rs 6,498 crore Punjab National Bank (PNB), has provisionally attached assets worth Rs 29.75 crore belonging to fugitive businessman Nirav Modi. The seizure has been made as part of the central probe agency’s ongoing investigation into the PNB fraud case. The ED officials confirmed the action saying that the attached assets include immovable properties and bank balances in India, which were identified as proceeds of the crime.

The Mumbai Zonal Office initiated the attachment under the Prevention of Money Laundering Act (PMLA), 2002.

The investigation stems from a First Information Report (FIR) filed by the Central Bureau of Investigation (CBI) in connection with one of the largest banking frauds in India, allegedly orchestrated by Nirav Modi and his group of companies. Modi is accused of defrauding PNB by obtaining fraudulent Letters of Undertaking (LoUs), causing a massive financial loss to the bank.

Nirav Modi Is Presently Lodged In UK Jail

The agency, which has been probing Modi in the alleged USD 2 billion fraud against the Punjab National Bank for over five years now, has attached assets worth Rs 2,596 crore in India and abroad in the past. Modi, 53, is presently lodged in a UK jail and has lost his extradition plea to India in connection with this alleged bank loan fraud case, which is also being investigated by the Central Bureau of Investigation.

The ED officials stated that the Enforcement Directorate seized properties in the form of foreign currencies amounting to Rs 12.96 lakh, various incriminating documents pertaining to overseas immovable properties, overseas bank accounts and digital devices during searches conducted two days ago under the Foreign Exchange Management Act (FEMA), 1999 at various locations in Mumbai and Kolkata as part of an ongoing probe in the case of front running business in respect of Axis Mutual Fund.

Modi and his uncle Mehul Choksi, both prime accused in the case, along with others are being probed by the ED on money laundering charges for allegedly perpetrating fraud in connivance with bank officials and by issuance of fraudulent Letters of Undertaking (LoUs) at the Brady House Punjab National Bank (PNB) branch in Mumbai.

Modi was declared a fugitive economic offender by a Mumbai PMLA court in December 2019. He was arrested the same year in London.

The ED said movable and immovable assets of Modi and his associates amounting to Rs 692.90 crore have been "confiscated" under the provisions of the Fugitive Economic Offenders Act. Also, assets to the tune of Rs 1,052.42 crore have been successfully restored to the victim banks -- PNB and consortium banks, it said.

"The extradition proceedings against Nirav Modi were initiated and are under progress in London, UK. Earlier this year, Nirav Modi applied for bail in a UK court but it was denied for the seventh time," it said.

The agency said an appeal was filed by Modi before the UK High Court against the bail order, which was later withdrawn. Currently, he is lodged in UK Jail.