PNB fraud: PMLA court allows ED to auction Nirav Modi’s two seized cars

ED had sought permission to auction three vehicles attached in earlier proceedings: a Skoda Superb Elegance, a Mercedes-Benz 4Matic FL 350 CDI and a Mercedes-Benz GLE 250.

MUMBAI: A court has permitted the Enforcement Directorate (ED) to auction two cars belonging to fugitive diamond trader Nirav Modi, observing that the vehicles have been lying idle for years and are at risk of substantial depreciation.

London [UK], May 19 (ANI): (File Photo) UK High Court has denied bail to Nirav Modi, the main accused in the USD 1 billion Punjab National Bank fraud case, rejecting his latest application during a hearing on Thursday, May 15, in London. (ANI Photo) (ANI)

The order, passed by a special court for cases under the Prevention of Money Laundering Act (PMLA) on Wednesday, was made available on Friday.

The ED had sought permission to auction all three vehicles attached in earlier proceedings: a Skoda Superb Elegance, a Mercedes-Benz 4Matic FL 350 CDI and a Mercedes-Benz GLE 250. Their combined value, as reflected in the attachment orders, exceeds ₹1 crore.

The court noted that Modi had been declared a fugitive economic offender on December 5, 2019. He had fled India in early 2018, a few days before FIRs were registered against him and his uncle Mehul Choksi in connection with the alleged ₹13,850-crore fraud at the state-run Punjab National Bank.

The ED and the Central Bureau of Investigation have accused Modi, Choksi and others of orchestrating a scheme involving the fraudulent issuance of Letters of Undertaking to benefit their diamond businesses. Modi was later traced to the United Kingdom, where he has been lodged in a prison for the past six years. The 54-year-old fugitive diamantaire is currently fighting an extradition battle in a UK court.

Referring to the status of the case, special judge AV Gujarathi observed that “there is no immediate prospect of commencement of trial” as many of the accused, including Modi himself, remain absconding. He added that the attached vehicles had remained unused since their seizure and risked further loss of value, while the costs associated with maintaining them would soon outweigh their residual worth.

Although the ED sought permission to dispose of all three vehicles, the court authorised the auction of only two: the Mercedes-Benz GLE 250 and, by way of re-auction, the Skoda Superb, for which an earlier sale order had been issued in March 2019. The court did not extend permission for the sale of the Mercedes-Benz 4Matic FL 350 CDI.

The judge directed that the auction must follow the prescribed procedure and that the sale proceeds be placed in a fixed deposit with a nationalised bank. The court asked for the deposit certificate to be submitted once the process concludes.