Modi, who is behind bars in the UK and faces extradition proceedings, was declared a fugitive economic offender under the Fugitive Economic Offenders Act last month.
CLAIMING THAT recoveries made from the sale of movable and immovable properties belonging to diamantaire Nirav Modi will be ‘a necessary boost to the economic health of the country in the long run’, the Punjab National Bank (PNB) on Friday sought permission from a special court to release the properties to them.
Modi, who is behind bars in the UK and faces extradition proceedings, was declared a fugitive economic offender under the Fugitive Economic Offenders Act last month. The special court is expected to hear arguments on confiscation of his properties, including his residence in Worli, multiple office premises in South Mumbai including the Rhythm House building in Kalaghoda, jewellery, cars and paintings.
Modi is named as accused by both the Enforcement Directorate and CBI for alleged fraud at the Brady House branch of PNB.
“It is submitted that the ED has rightly recognised that the PNB is a victim of the mammoth fraud committed by the fugitive offender (Modi) which has resulted in huge losses to the claimants (PNB and UBI consortium of banks). Needless to say that the ED has not made any allegations of criminality against the claimants. It is thus submitted that the act of depriving them of the mortgaged ... properties would yield an absolutely absurd and intended results in which the claimants being interested and innocent parties would be gravely and irreparably prejudiced,” PNB said.
The application by PNB added that the consortium of banks had in good faith and in a bonafide manner accepted various movable and immovable properties from Firestar International Limited, controlled by Modi, including his 69 bank accounts, stocks, valuables, investments and vehicles, as guarantee for providing working capital facilities.