PNB moves court, seeks release of Nirav Modi’s properties worth ₹71.16 crore

The Punjab National Bank (PNB) on Wednesday filed a petition before the special PMLA (Prevention of Money Laundering Act) court seeking release of fugitive diamond trader Nirav Modi’s properties worth ₹71.16 crore which had been attached by the Enforcement Directorate (ED).

The agency is probing the ₹13,850-crore loan fraud at the public sector bank.

The bank in its plea claimed that it had suffered a loss of ₹8,526.20 crore due to the fraud while the value of the properties so far attached by the agency was approximately ₹2,324.97 crore. Of these, properties worth ₹1,066.41 crore – belonging to the accused in the case - had been released under the PMLA, the petitioner said.

The bank pleaded with the court to ensure release of the properties worth ₹71.16 crore which included valuables worth around ₹42 crore lying with the custodian of Bharat Diamond Bourse, 16 pieces of jewellery worth ₹35.52 lakh which were on display at Four Seasons hotel, plant and machinery at Surat worth ₹2.32 crore, an office space at a commercial building in Kurla - valued at ₹24.63 crore, which was previously owned by Rhythm House Private Limited, 8 high-end cars including a Bentley (Arnage DAF 0001) valued around ₹26 lakh, and goods lying with DGDC, Surat, estimated at ₹1.41 crore.

The plea claimed that these properties were excluded from confiscation during the proceedings initiated against Modi after he was declared a fugitive economic offender. These were properties mortgaged and delay in their release might reduce their further value, the bank added.

The CBI had on January 31, 2018, registered a case against Nirav Modi, his Firestar Group, his brother Nishal and several others, including some PNB officers, for allegedly defrauding the public sector bank of ₹13,850 crore.

Investigation by the CBI revealed that between 2011 and 2017, as many as 1,214 letters of undertakings (LoUs) totalling ₹23,780 crore were fraudulently issued by PNB to various overseas banks to finance imports by Modi’s firms - Diamonds R US, Stellar Diamonds and Solar Exports, agency sources said. Of the LoUs, 150 – worth around ₹6,498.20 crore - remained unpaid when the scam came to light in January 2018, the sources added.

Modi’s maternal uncle Mehul Choksi is also accused of duping PNB to the tune of ₹7,080 crore, using the same modus operandi - by fraudulently obtaining LoUs and foreign letters of credit from the bank in favour of his Gitanjali Group firms, when PNB had not sanctioned any credit facility to either of Modi’s firms or those of Choksi, officials said.