PNB Fraud Update: Nirav Modi’s assets of Rs 29.75 crore seized by ED, Read actions taken by ED till now
The Enforcement Directorate (ED) has taken action against fugitive businessman Nirav Modi by seizing assets worth ₹29.75 crore. This is part of the ED’s ongoing investigation into the ₹6,498 crore Punjab National Bank (PNB) fraud case, one of the biggest banking frauds in India’s history. The seized assets include properties and bank balances in India, which the ED identified as proceeds of the crime under the Prevention of Money Laundering Act (PMLA), 2002.
Background of the PNB Fraud Case
The investigation began after the Central Bureau of Investigation (CBI) filed a First Information Report (FIR) related to the massive fraud. Nirav Modi, along with his uncle Mehul Choksi, is accused of cheating PNB by using fake Letters of Undertaking (LoUs). These fraudulent LoUs were used to get loans from foreign banks without proper security or collateral.
The scam, which was uncovered in 2018, involved officials from PNB’s Brady House branch in Mumbai, who allegedly issued unauthorized LoUs to Modi’s companies. This allowed Modi’s firms to secure large amounts of credit from foreign banks. The fraudulent activities went undetected for several years, allegedly due to collusion between Modi and some bank officials. The total loss to PNB was estimated at ₹6,498 crore.
ED’s Actions So Far
The ED has been actively pursuing the case and has already seized movable and immovable assets worth ₹2,596 crore linked to Nirav Modi and his associates, both in India and abroad. Additionally, under the Fugitive Economic Offenders Act (FEOA), 2018, assets valued at ₹692.90 crore have been confiscated following an order from the Special Court (FEOA) in Mumbai.
Furthermore, the ED has managed to recover and return assets worth ₹1,052.42 crore to the victim banks, including PNB and other consortium banks involved in the case. These recovered assets were physically handed back to the banks, providing some relief from the massive financial losses incurred. Click here to read more news related to PNB Bank.
Legal Proceedings Against Nirav Modi
The ED has filed multiple prosecution complaints, including supplementary complaints, against Nirav Modi and his associates under the PMLA in a special court. These legal actions are part of the ongoing effort to hold Modi accountable for his role in the fraud.
Nirav Modi’s Extradition Battle
Nirav Modi, the main accused in the PNB scam, was arrested in the UK in 2019 and has since been fighting extradition to India. Despite several legal battles, he remains in custody in the UK, with extradition proceedings still underway. The Indian government continues to push for his return to face trial in India. Click here to read more news related to PNB Bank.
Conclusion
The seizure of assets worth ₹29.75 crore is another step by the ED in its efforts to bring justice in the PNB fraud case. The ongoing investigations and legal proceedings highlight the severity of the scam and the commitment of Indian authorities to recover the lost assets and hold those responsible accountable. As the extradition battle continues, the focus remains on ensuring that the perpetrators of one of India’s biggest banking frauds are brought to justice.
