PNB SCAM CASE: NIRAV MODI'S SOLAR PLANT, MUMBAI FLAT UP FOR AUCTION TO RECOVER DUES, SAYS REPORT
The Mumbai-based Debt Recovery Tribunal-I has put up a solar power plant belonging to fugitive diamond merchant Nirav Modi on sale in an attempt to recover Rs 2,348 crore, which is just a small portion of the total fraud amount of Rs 8,526.20 crore. For the third time, Nirav Modi's posh flat in the Pedder Road area of south Mumbai will also be auctioned off, IANS reported.
Modi's solar power plant, which is located in Khandale village of Maharashtra, has a capacity of 5.247 MW. Along with the plant and machinery, the solar plant is valued at Rs 12.40 crore.
On the other hand, Modi's Pedder Road flat is on the second floor of Grosvenor Building, and proposed to be auctioned off as a fully furnished residence along with two parking lots. Its collective value was estimated to be around Rs 11.70 crore.
The online auction shall be held on October 25 between 2-4 pm only, for all the listed assets, as per the DRT-I's notification.
Besides, the DRT-I plans to auction off two large land parcels belonging to Modi and his group company, Firestone Trading Pvt. Ltd. Both the land parcels are currently mortgaged with the Union Bank of India, presumably in lieu of the loans it had extended to the diamantaire and his group companies.
Modi is wanted in India on charges of fraud and money laundering. He is accused of defrauding the Punjab National Bank of over $2 billion, using fraudulent Letters of Undertaking (LoUs).
Modi was arrested in London in March 2019 and has been fighting extradition to India ever since. He has denied the charges against him.
In 2019, he was declared a fugitive economic offender under the Fugitive Economic Offenders Act and a list of his properties were ordered to be attached as part of the Act.
In December 2022, the UK Supreme Court rejected Modi's final appeal against extradition. The court ruled that there were no bars to Modi's extradition and that he should be sent to India to face trial.
The PNB has said that it suffered losses to the tune of Rs 8,526.20 crore in the fraud and so far only Rs 1,066.41 crore of properties have been released from attachment which is “grossly insufficient” to meet its losses.
Earlier, auctions have been held of properties seized in the case for recovery of loans to the banks.
In July this year, the Punjab National Bank, as part of a consortium of banks, had sought the release of properties to the tune of Rs 71 crore linked to Modi, attached by the Enforcement Directorate (ED) in the bank fraud case.
An application moved on behalf of the PNB before the special court states that the claimants of the properties are public sector banks and the amount sought to be recovered is public money.
The bank had submitted a list of 18 movable and immovable properties totaling over Rs 71.16 crore, which it has sought to be released from the attachment of the ED so that it could be used for recovery of the outstanding debts owed to the bank.
These properties include valuables of Rs 22.69 crore received from Hong Kong, lying with the custodian of Bharat Diamond Bourse inside the precious cargo clearing centre, owned by Firestar Diamond Private Limited, linked to Modi. Similar valuables lying with the custodian to the tune of Rs 18.76 crore received from Dubai and other properties include 16 pieces of jewellery which were on display stock at Four Seasons Hotel worth Rs 35.52 lakh, an office property in Kurla, a plant and machinery of a company linked to Modi and eight cars including a Bentley, are also part of the list.
The PNB plea stated that previously the special court in similar orders had allowed the release of attached properties linked to the case. The plea states that the ED has attached properties to the tune of Rs 2,324.97 crore in the case.
The plea added that the trial in the case has not commenced despite a lapse of substantial time and in these circumstances, it is within the court’s power to pass appropriate orders to release the 18 properties to which the PNB and the consortium of banks is entitled to.
The plea added that if the assets were not released, it would cause “irreparable injury and harm”. “The interest of the claimants being comprised of public sector banks must be taken into account in the interest of the economy of India as well as the Indian banking system which faces dire consequences due to the unrecovered dues,” the plea stated.
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2023-09-26T09:12:44Z dg43tfdfdgfd