Mumbai: On Wednesday, the special court under Fugitive Economic Offenders (FEO) Act allowed the Enforcement Directorate (ED) to confiscate fugitive diamantaire Nirav Modi’s 39 properties worth ₹500 crores.
The court also allowed Punjab National Bank’s (PNB) claim over nine properties, valued at ₹424 crores, which were mortgaged with the bank for credit facilities. These include properties at Central Park, New York, his bank account, valuables such as jewellery and watches, which were covered under the personal guarantee given by Modi.
Counsels for ED, Hiten Venegaokar and Arvind Aghav, had argued for confiscation of Modi’s 48 properties, valued at ₹929 crores, under FEO Act.
PNB, which is a victim of the alleged fraud by Modi and his companies, sought nine properties claiming they were hypothecated with the bank under an order dated September 6, 2021.
The special judge SM Menjoge, allowed the plea for confiscation of the other properties valued at ₹500 crores – they include valuables recovered by ED and money held by Modi and his companies in various accounts in foreign banks (see box). Also included in the list are properties whose values are not determined, such as immovable assets placed in his farmhouse at Alibaug.
The court said the bank can proceed with its claim before the competent authorities, tribunal or courts as the case may be.
This is the second set of Modi’s properties and firms which have been allowed to be confiscated by the special FEO court.
After Modi was declared fugitive economic offender, ED had sought to confiscate properties valued at ₹1,396.07 crore, which it claimed was purchased or owned by him using proceeds of the crime.
Modi was declared FEO under the new law on December 5, 2019, after which the court began the process to confiscate his properties. The court refused to permit him to intervene in the process, but allowed banks to be heard.
While declaring him as fugitive economic offender, the special court had earlier observed that Modi left the country under suspicious circumstances to “dodge the penal consequences of the acts he has done or committed while in India till the year 2017”.
Treasure chest
12 immovable properties attached to Rhythm House.
22 cars including a Bentley and a Mercedes.
Consignments of jewellery, diamonds seized by ED during probe.
Machinery at the Surat plant.
Money parked at EFG Bank, Singapore, and UBS Bank, Switzerland.
Valuables owned by Modi including jewellery, watches.
