ED confiscates properties of Nirav Modi

NEW DELHI: The Enforcement Directorate has confiscated properties worth Rs 329.66 crores belonging to fugitive economic offender Nirav Modi under the Fugitive Economic Offender (FEO) Act.

The properties confiscated by the agency are in the form of four flats at the iconic building Samudra Mahal in Worli Mumbai, one Seaside Farm House and land in Alibaug, Wind Mill in Jaisalmer, flat in London and Residential Flats in UAE, shares and bank deposits.

Enforcement Directorate (ED) had filed an application on July 10, 2018 before the Court to declare Nirav Modi, a Fugitive Economic Offender and confiscate the properties ( valued at Rs 1396 Crore approx., attached at that time.) belonging to Nirav Modi and the entities directly/in directly belonging to him.

The Special Court on December 5, 2019 had declared Nirav Modi a Fugitive Economic Offender. Further, vide its order on June 8, the special Court Court directed ED to attach the properties (other than properties mortgaged/hypothecated and secured to PNB led consortium) belonging to Nirav Modi and his companies and ordered that after attachment thereof, the said properties shall stand confiscated to Central Government.

The Court further directed consortium of banks to approach the PMLA special Court to claim the mortgaged/hypothecated and secured properties, which were attached by ED. On examination of properties attached, it was found that properties worth Rs 1000 Crore are prima facie covered under mortgage etc.

Further, Bombay High Court had directed that sale proceeds of paintings (Rs 45 Crore approx.) as FD till further order. Accordingly, ED has attached the properties worth Rs. 329.66 Crore under FEO Act, 2018, which now stands confiscated to Central Government.

The process for confiscation of remaining attached properties under FEOA has also been taken up. In this case, ED has attached properties (assessed value: Rs 2348 Crore) of Nirav Modi under Prevention of Money Laundering Act, 2002.

Both Nirav Modi and Mehul Choksi are the prime accused in $2 billion Punjab
National Bank (PNB) scandal.