The Bombay High Court Wednesday directed the Income Tax (I-T) department to file a reply to a petition by fugitive diamantaire Nirav Modi's firm, Camelot Enterprises, challenging the auction of 68 paintings belonging to him.

Earlier this month, a special court in the city had permitted the I-T department to auction 68 paintings owned by Nirav Modi and his shell firm, Camelot Enterprises.

The firm approached the Bombay HC against the auction, calling it unlawful.

On March 26, the I-T department, in accordance with the special court order, auctioned 55 of the 68 paintings and claimed to have raised Rs 55 crore.

On March 22, a special court in the city had permitted the Enforcement Directorate to auction 11 luxury vehicles belonging to Nirav Modi, and had permitted the Income Tax department to auction the high-value art collection belonging to the jeweller.

Nirav Modi, an accused in the PNB scam, was arrested in London last week and remanded in judicial custody by a local court there.

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