MUMBAI: In a first, a Prevention of
Money Laundering Act court ordered confiscation of property worth ₹1,400 crore belonging to fugitive economic offender
Nirav Modi. The
assets include certain offshore property, jewellery and paintings.
According to the order reviewed by ET, the court directed the
Enforcement Directorate to attach the property, except those secured by lenders.
Modi, an accused in the ₹13,570 crore fraud caused to
Punjab National Bank, faces extradition proceedings in London.
“Properties of respondent (Nirav Modi) excluding the properties claimed by lenders which are only secured by mortgage, hypothecation and guarantee and to the extent of valuable paintings seized by income tax department shall be attached by applicant (ED) under the provisions of FEO Act within a month and after attachment thereof, the said properties shall stand confiscated to Central Government,” the court said in the order.
It allows lenders including PNB and other banks to get hold of the assets secured to them by Modi by mortgage, hypothecation and guarantee. The lenders can proceed with their claims for properties exempted from the order.
The court allowed the ED to find a remedy as per law in respect of the paintings seized by the IT department.