Ask Nirav Modi to return, Delhi HC tells his firm

The Delhi High Court on Wednesday directed diamond merchant Nirav Modi’s company, Firestar Diamond, to ask him to return to the country.

The court expressed “serious concern” over Mr. Modi’s statement that he will not submit to jurisdiction of Indian agencies or courts.

“We are dealing with a fugitive here according to them [Enforcement Directorate]. A fugitive from justice stands on a different footing,” the Bench remarked.

It said there was merit in the Enforcement Directorate’s contention that while the “driving force behind the companies” (Mr. Modi) was not submitting to jurisdiction here, his companies cannot be given any discretionary relief.

The court’s observation came after the company’s lawyer said relief should not be denied to it on a technicality that Firestar International had authorised the filing of petitions by its subsidiary, Firestar Diamond.

“If we should not stress upon technicality, then ask Mr. Modi to come back. Ask him to come back,” the Bench told advocate Vijay Aggarwal, who appeared for Firestar Diamond and Firestar International.

Additional Solicitor General Sandeep Sethi, representing ED, raised several objections, including that of jurisdiction, against maintainability of the pleas. The agency contended that no relief should be granted to the two companies under the discretionary power of the court as Mr Modi was a “fugitive from justice”, was “absconding” and not joining the investigation.

The agency showed the share holding pattern of the two companies and several others in which Mr. Modi has stake and argued that he was the person behind all of them.

Mr. Agarwal argued that the media has termed his client as a fugitive and only non-bailable warrants have been issued against him and no order proclaiming him as an absconder has been passed.

He urged the Bench to either stay the ED proceedings against the two companies or direct the agency to provide the reasons for its search and seizure action.

The observations came during the hearing on the pleas of Mr. Modi and his uncle Mr. Mehul Choksi’s firms challenging the ED proceedings against them as well as various provisions of the Prevention of Money Laundering Act (PMLA). The court listed all the matters for hearing on May 3.