HC asks government to file affidavit as reply to plea by Nirav Modi’s son

The Bombay high court (HC) on Tuesday directed the Central government to file an affidavit in reply to a petition filed by Rohin Modi, son of fugitive diamond trader

The Bombay high court (HC) on Tuesday directed the Central government to file an affidavit in reply to a petition filed by Rohin Modi, son of fugitive diamond trader Nirav Modi who is a prime accused in the ₹13,500-crore Punjab National Bank (PNB) fraud, challenging confiscation of properties purportedly belonging to a trust under his name.

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On June 8, the special court for trying offenders under the Prevention of Money Laundering Act (PMLA) ordered confiscation of movable and immovable properties worth about ₹1,396 crore belonging to Nirav Modi. 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 massive fraud at state-run PNB.

The special court has in December 2019 declared Nirav Modi a “fugitive economic offender” as contemplated under the 2019 Act.

The properties ordered to be confiscated include bank accounts in India and England, residential and commercial properties in India, the United Arab Emirates and England, allegedly purchased by the fugitive diamond trader from proceeds of the crime.

However, Rohin Modi has moved high court contending that the confiscated properties also include properties owned by Rohin Trust and challenged confiscation of trust properties primarily on the grounds of breach of principles of natural justice that the order was passed by the special court without making him party or giving him notice.

The petition came up for hearing on Tuesday before division bench of justice RD Dhanuka and justice VG Bisht which directed the Centre to reply to the petition in one week and posted the petition for further hearing on August 7.

On January 31, 2018, the Central Bureau of Investigation (CBI) has registered an offence under various sections of the Prevention of Corruption Act and relevant provisions of the Indian Penal Code against Modi and several others, including two PNB officials. According to the complaint lodged by PNB, between February and May 2017, 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 and duped the public sector bank to the tune of USD1,015.35 million (approximately ₹6,498.20 crore).

A similar offence was registered against Nirav Modi’s maternal uncle Mehul Choksi for duping PNB of crores of rupees by using the same modus operandi.