PNB scam: Court allows confiscation of Nirav Modi's assets worth Rs 1,400 crore

A special PMLA court in Mumbai on Monday allowed the confiscation of assets worth Rs 1,400 crore owned by Punjab National Bank (PNB) scam accused Nirav Modi.

The diamantaire is a key accused in the Rs 13,000 crore PNB scam and fled the country before the fraud came to light. 

The order was passed on a plea of the Enforcement Directorate (ED) under the Fugitive Economic Offenders Act (FEOA) which was enacted two years ago to deal with such crimes. This is the first order of confiscation passed under the FEO Act anywhere in the country.

Special Judge V C Barde permitted the ED to confiscate those assets owned by Nirav Modi that are not mortgaged or hypothecated to the PNB. 

The ED said the value of the properties seized under the act is more than Rs 1,400 crore.

In his order, the judge said the assets shall be attached by the ED under the provisions of the FEO Act within one month.

After that, the said properties/assets shall stand confiscated to the Central Government under section 12(2) and 8 of the FEO Act, he added. 

The court also gave permission to the banks to lay claims for secured /hypothecated assets out of these confiscated assets before the appropriate judicial forum.

Nirav Modi was declared fugitive offender on December 5, 2019. Last year, he was arrested in London and is presently in a UK prison after his several bail applications were rejected.