E-Paper
Nirav Modi’s son moves HC, challenges confiscation of trust properties
On June 8, the special court for trying offenders under the Prevention of Money Laundering Act (PMLA), 2002, had ordered the confiscation of Nirav Modi’s movable and immovable properties that are estimated to be worth about Rs 1,396 crore.
The Bombay high court (HC) has directed the Central government to file an affidavit in reply to a petition filed by Rohin Modi, the son of diamond trader Nirav Modi, a prime accused in Rs.13,500 crore Punjab National Bank (PNB) fraud, challenging the confiscation of the properties purportedly belonging to a trust named after him.
On June 8, the special court for trying offenders under the Prevention of Money Laundering Act (PMLA), 2002, had ordered the confiscation of Nirav Modi’s movable and immovable properties that are estimated to be worth about Rs 1,396 crore.
The order was passed in accordance with section 12 of the Fugitive Economic Offenders Act, 2019, on an application filed by the Enforcement Directorate (ED), which is probing money-laundering aspects of the multi-crore fraud at the state-run PNB.
The special court had in December 2019 declared Nirav Modi a “fugitive economic offender” as contemplated under the 2019 Act.
The properties ordered to be confiscated include bank balances in India and the United Kingdom (UK), residential and commercial properties in India, the United Arab Emirates (UAE) and the UK, allegedly purchased by the diamond trader from the proceeds of the crime.
Rohin Modi moved HC contending that the confiscated properties also include properties owned by Rohin Trust. He has challenged confiscation of the trust properties primarily on the ground of breach of principles of natural justice, which implied that the order was passed by the special court behind his back, without making him party and without issuing him notice.
The petition came up for hearing on Tuesday before a two-member HC division bench, comprising Justices RD Dhanuka and VG Bisht, who directed the Central government to reply to the petition in one week.
The court has fixed August 7, as the next date of hearing.
On January 31, 2018, the Central Bureau of Investigation (CBI) had registered an offence under various sections of the Prevention of the Corruption Act, 1988, and the relevant provisions of the Indian Penal Code (IPC) against Nirav Modi and several others, including two officers of the PNB.
According to the complaint lodged by PNB, between February and May 2017, Nirav Modi and his partnership 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 in south Mumbai and duped the public sector bank to the tune of $1015.35 million, whihc is equivalent to around Rs.6498.20 crore.
A similar offence is registered against Nirav Modi’s maternal uncle Mehul Choksi for duping PNB of crores of rupees by using the same modus operandi and fleeing to Antigua in the Carribbean islands.
