court directed the I-T department to recover dues and deposit the sale proceeds as fixed deposits in State Bank of India, with a copy of the receipt to be submitted to the court.
Legal experts say the ED has the first right over the attached properties as it deals with criminal offence which supersedes civil offences like tax evasion. Hence, even after the liquidation, the ED will recover its dues first.
Subsequently, the PMLA
court also allowed the ED to auction 11 of Nirav Modi’s automobiles, including Rolls-Royce, Porsche, Mercedes-Benz, and Toyota Fortuner. Besides, the court also issued a non-bailable warrant against Nirav Modi’s wife Ami.
Nirav Modi was arrested by Scotland Yard in Holborn on Tuesday, and produced before the Westminster Magistrates court on Wednesday to contest his extradition from the UK to India over the embezzlement allegations. Nirav Modi was denied bail.
So far, the ED has attached ~1,873 crore worth of assets owned by Nirav Modi in connection with the Punjab National
Bank (PNB) letters of undertaking (LoU) fraud, which had triggered losses to the tune of ~13,000 crore to the bank.
Nirav Modi’ three firms — Diamond ‘R’ Us, Solar Exports, and Stellar Diamond — had fraudulently issued LoUs aggregating to $1015.35 million during the period from February 2011 to May 2017 from PNB.
Meanwhile, the enforcement agency issued 18 letters rogatory to Armenia, Belgium, China, France, Japan, Malaysia, the UK, and Singapore, seeking judicial assistance for further course of action.