Special court orders release of Rs 71 cr worth properties linked to Nirav Modi and firms

In a significant development related to the Punjab National Bank (PNB) scam, a special court has issued a directive for the release of 18 properties valued at over Rs 71 crore, which are associated with the absconding diamond merchant Nirav Modi and his firms.

The court’s decision came in response to the claims filed by the bank, representing both its individual interests and those of a consortium of banks. The Enforcement Directorate (ED) had attached these properties, alleging losses exceeding Rs 7,000 crore due to the accused obtaining fraudulent Letters of Understanding (LoUs).

The bank sought the restoration of secured, mortgaged, hypothecated, and exempted-from-confiscation properties, encompassing a range of assets. This includes valuables held by the custodian of Bharat Diamond Bourse from Hong Kong and Dubai, valued at over Rs 40 crore, 16 pieces of jewelry from the display stock at a five-star hotel, office spaces in Kurla, and eight cars, including a Bentley valued at Rs 26 lakh.

The court has directed the release of these properties based on their respective categories, with the liquidator appointed for two of Modi’s firms, Firestar International Limited and Firestar Diamond International Limited, and PNB being the beneficiaries.

As part of the legal process, the court mandated an undertaking to be provided during the restoration of the properties, ensuring compliance with the provisions of the law.
Nirav Modi is currently engaged in extradition proceedings in the UK, responding to requests from Indian authorities to return and face criminal charges associated with the PNB case.