March 24, 2023

pnb: Enforcement Directorate releases Nirav’s assets for auction to recover dues – Times of India

MUMBAI: The Enforcement Directorate (ED) has de-attached assets worth Rs 1,000 crore, including the building that once housed Rhythm House music store at Kala Ghoda, a Nepeansea Road flat, an office building in Kurla and jewellery, of diamantaire Nirav Modi on court order for auction to recover the Punjab National Bank (PNB) dues.
The National Company Law Tribunal has appointed a liquidator to auction the properties. The ED has already released some of these properties and is in the process of giving possession of the rest, which includes a solar power plant in Ahmednagar district, to the bank for the auction. The agency has also handed over to PNB around Rs 6 crore it had recovered earlier after auctioning cars, paintings and other expensive items owned by the Modis.
Modi had allegedly defaulted Rs 6,500 crore PNB loan through fraudulent letters of undertaking (LoU) and the ED had confiscated assets worth Rs 2,600 crore in a money laundering case it is investigating against him.
Modi is currently lodged in a jail in London, facing extradition to India.
Some of Modi’s properties that were not mortgaged with the bank, including his four lavish flats at Samudra Mahal building in Worli worth over Rs 100 crore, his Alibaug bungalow and windmills in Jaisalmer, will remain in ED’s possession. The investigating agency is yet to get possession of his properties abroad, including in the US.
It is alleged that Modi had bought many of these properties through the money he had defrauded from PNB.
In 2017, he had bought the iconic Rhythm House building through his company Firestar Diamond from its owners, the Curmally fam-ily, for Rs 32 crore. His plan was to convert the heritage property into a high-end jewellery showroom.

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