Business Standard said that the decision was taken earlier this week at a meeting in the finance ministry under chairmanship of finance secretary Hasmukh Adhia.
The Enforcement Directorate (ED) could soon hand over loan defaulters Nirav Modi and Vijay Mallya's attached properties to state-owned construction company National Buildings Construction Corporation (NBCC), Business Standard reported.
According to the report, NBCC would rent these attached properties out for commercial or residential purposes.
The publication said that the decision was taken earlier this week at a meeting in the finance ministry under chairmanship of finance secretary Hasmukh Adhia.
The ED manages attached properties. There is no provision under the Prevention of Money Laundering Act (PMLA) for renting out of seized properties to earn revenue. The Act is expected to be amended soon to enable putting immovable assets on rent.
"The proposal is for managing land of around 25,000 acres, as well as over 300 establishments, including factories, flats, buildings and shops, which have been taken over by the ED," an NBCC official told the newspaper.
Meanwhile, the nearly $2 billion (Rs12,000 crore) bank scam perpetrated by diamantaire Nirav Modi seems to have shaken confidence of diamond jewellery buyers, especially from unorganised jewellers, owing to concerns over purity of the precious stones, and has resulted in drop in sales, industry body Assocham found in a survey.
Assocham said that while branded jewellery makers issue certificates of purity, bulk of the trade is still concentrated in the unorganised market, based on mutual faith between consumers and jewellers.
“This has been shaken and consumers are not willing to take chances following massive adverse publicity about the diamond sector (after the scam),” it said.
The demand for diamond jewellery seems to have decreased by 10 – 15% within two months, Assocham said.
Nirav Modi, one of the most high-profile diamantaires in the country until a couple of months ago, allegedly duped Punjab National Bank of close to Rs12,000 crore. The scam surfaced in February, while Modi fled the country a month before that. In the wake of the scam, there have been concerns about quality of diamonds he sold to customers. Naturally, doubts have crept up about purity of diamonds sold by others too.
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 "PNB Scam: ED to hand over Nirav Modi, Vijay Mallya's assets to state owned NBCC")
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