A special court has ordered the release of 18 properties worth over Rs 71 crore, linked to absconding diamond merchant Nirav Modi and his firms, in favor of the Punjab National Bank (PNB) and liquidators.
The bank had sought claim to certain properties attached by the Enforcement Directorate (ED), stating that it had suffered losses of over Rs 7,000 crore due to alleged acts of the accused, of obtaining fraudulent Letters of Understanding (LoUs).
The court directed that the properties be released to the liquidator appointed for two firms of Modi, Firestar International Limited and Firestar Diamond International Limited, and to PNB.
Modi is currently contesting extradition proceedings in the UK after the authorities sought him to be extradited to India to face criminal charges related to the PNB case.
The properties include valuables lying with the custodian of Bharat Diamond Bourse received from Hong Kong and Dubai, valued at over Rs 40 crore, 16 pieces of jewellery which were part of the display stock at a five-star hotel, office spaces in Kurla, and eight cars including a Bentley worth Rs 26 lakh.
The court gave directions for an undertaking to be given at the time of the restoration of the properties to proceed as per the provisions of law.
This is a significant development in the PNB scam case, which has been one of the most high-profile corporate scandals in India in recent years.
It remains to be seen what impact the release of the properties will have on the case, but it is clear that it is a major setback for Modi and his companies.
