The Bombay high court on Thursday issued notices to Nirav Modi, Punjab National Bank (PNB), and another creditor who has staked his claim to some of the 48 assets seized by the Enforcement Directorate (ED) from the fugitive diamantaire.
The matter has been posted for hearing after three weeks.
In its petition, the probe agency has challenged the special PMLA (Prevention of Money Laundering Act) court’s October 19 order, permitting PNB to attach Modi’s nine properties worth ₹424 crore which were mortgaged with it. The court had then also allowed the ED to confiscate 12 properties worth over ₹500 crore.
The ED has also taken objection to the court’s November 17 order when the latter modified its earlier order and said that PNB was entitled to a few more assets owned by the diamond trader.
On Thursday, when the plea came up for hearing before a division bench of justice SB Shukre and justice Kamal Khata, the counsel for the ED argued that it had a right to all the properties and the creditors could not be allowed to attach the assets before they were confiscated by the agency as part of its investigation.
However, the lawyer appearing for PNB contended that the bank had loaned a large amount of public money to Modi and his companies. Because of non-payment of the loans, the bank’s financial condition had been affected, the counsel said and referred to the debt recovery tribunal’s award which purportedly allowed the bank to attach certain other assets of Modi’s companies. This award formed the basis of the special court’s November 17 order.
{{/usCountry}}However, the lawyer appearing for PNB contended that the bank had loaned a large amount of public money to Modi and his companies. Because of non-payment of the loans, the bank’s financial condition had been affected, the counsel said and referred to the debt recovery tribunal’s award which purportedly allowed the bank to attach certain other assets of Modi’s companies. This award formed the basis of the special court’s November 17 order.
{{/usCountry}}After hearing the submissions, the HC said the plea ought to be heard on its merits and issued notices to the respondents.
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