Business / ₹1,000 crore worth of Nirav's properties to be auctioned to recover PNB's dues

Zoom News : Dec 25, 2021, 08:19 PM
Mumbai: The Enforcement Directorate (ED) has detached assets worth ₹1000 crore belonging to diamantaire Nirav Modi – prime accused in the massive fraud at Punjab National Bank (PNB), including the iconic Rhythm House at Kala Ghoda in south Mumbai, four flats in Worli and an office building in Kurla. A senior ED officer said that a liquidator appointed by the National Company Law Tribunal will conduct the liquidation process of the properties . The seized properties will be auctioned to recover the amount payable by Modi’s firms to the PNB, the officer added.

Nirav Modi and his wife Ami, who is an American citizen, fled the country in the first week of January 2018, shortly before the massive fraud at the public sector bank came to light. On January 31, 2018, the Central Bureau of Investigation (CBI) registered an offence under various sections of the Prevention of Corruption Act (POC) and the relevant provisions of the Indian Penal Code (IPC) against Modi and several others, including two officers of the PNB.

According to the complaint lodged by the PNB, between February and May 2017, Nirav Modi and his firms namely, M/s Diamond R US, M/s Solar Exports and M/s Stellar Diamond got fraudulently issued 150 Letters of Undertaking (LOUs) from Brady House branch of PNB and duped the public sector bank to the tune of USD 1015.35 million, equivalent to ₹6498.20 crore, resulting in loss of ₹6,805 crore to the public sector bank.

Similarly, Modi’s maternal uncle Mehul Choksi, another prime accused in the case, has allegedly duped PNB of ₹7,080.86 crore. Choksi’s Gitanjali group has also defaulted on payment of dues to the tune of ₹5,099.74 crore to several other banks in India.

Modi is currently lodged in a jail at Wandsworth Prison in South-west London ever since he was arrested by the British police in March 2019 on charges of extradition warrants issued against him, whereas Choksi is reportedly acquired citizenship of Antigua and is presently residing in the Caribbean island nation.

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