In the court of Special Judge of the City, Civil and Sessions Court of Bombay on Monday has allowed the confiscation of assets owned by diamantaire Nirav Modi. The assets include certain offshore property, jewelry, and paintings. He is a key accused in the Rs 13,570 crore PNB Scam and fled the country but faces extradition proceedings in London. The order was passed on the plea of the Enforcement Directorate (ED) under the Fugitive Economic Offenders Act(FEOA) which was enacted two years ago to deal with such types of crimes.
According to the order reviewed by ET, the Special judge VC Barde directed the Enforcement Directorate to attach the property owned by Nirav that is not mortgaged, hypothecated and guarantee within a month and after attachment, the said properties shall be confiscated by the Central Government under the provisions of the FEO act. It allows lenders including PNB and other banks to get hold of the assets secured to them by Modi, can claim for properties exempted from the order, and to the extent of valuable paintings seized by the income tax department. This is the first order of confiscation passed under the FEOA anywhere in the country.
The Application presented before the court: The Application No 998 of 2018.
By: Mansi Jain