Mumbai: In a significant development, the special PMLA court has allowed the plea filed by the Punjab National Bank (PNB) for the release of properties worth Rs 66.33 crore owned by fugitive diamantaire Nirav Modi and his sister Purvi to the bank. These properties were attached by the Enforcement Directorate (ED) in the money laundering probe against Modi.
The bank had claimed that it suffered a loss to the tune of Rs 8,526.20 crore owing to the fraud committed by Modi. The CBI, in its chargesheet, claimed that Modi had cheated the bank through fraudulent Letters of Undertaking (LoUs) worth Rs 23,780 crore. The amounts obtained were used to pay previous dues. The ED, which probed the money laundering allegations, could only get its hands on property worth Rs 2,324.97 crore and attach the same.
As per the prosecution's case, if Modi is found guilty, the property so attached would be confiscated and the money recovered would be reverted to the government of India. The banks, however, time and again approached the court for the release of the properties to clear the dues.
The banks pleaded that the mortgaged properties of the companies, Modi and his family members, who stood guarantor for these companies, be handed over to two consortiums – one headed by PNB, which has 16 member banks, and the second headed by the Union Bank of India, which has nine member banks.
The bank approached the court to seek the release of three properties – valuables worth Rs 40.83 crore, including jewellery, coins, watches and cash recovered from Nirav Modi's residence at Samudra Mahal in Worli; a flat worth Rs 19.50 crore in his sister Purvi's name at Diamond Head Building on Bhulabhai Desai Road; and other unvalued movable properties recovered from Modi's Worli house.
The ED, which had attached the property, gave no objection to the release, and so did Purvi. Purvi claimed that she had nothing to do with this property and stated that she is not the beneficial owner of the property.
