The Punjab National Bank (PNB) has filed an application before a special court seeking the restoration of properties worth over Rs 71 crore owned by fugitive diamond merchant Nirav Modi. The bank is looking to recover its dues after Modi was accused of duping the bank in a Rs 14,000 crore scam. The properties in question were seized by probe agencies under the provisions of the Prevention of Money Laundering Act.
PNB has urged the court to release the seized properties so that it can recover a part of its dues. The bank consortium claims that it conducted its business in good faith and was unaware of the fraud when it disbursed loans to Nirav Modi’s companies. However, only Rs 1,066.41 crore worth of properties have been released from attachment so far, which is insufficient to cover the quantifiable loss.
The plea emphasizes that the claimants are public sector banks and the amount sought to be recovered is public money. It further states that some of the attached assets are subject to market fluctuations, and any delay in liquidating them may reduce their value. Therefore, there is an urgent need for the speedy disposal of these assets to realize their best value.
Among the properties sought to be restored are valuables owned by Firestar Diamond Ltd, jewelry worth Rs 35.52 lakh, and eight cars, including a Bentley owned by Nirav Modi. The total value of the properties being sought is Rs 71.16 crore.
The court has asked the prosecution to file its reply by July 25.
In summary, PNB has approached the court seeking the restoration of properties owned by Nirav Modi in order to recover its dues. The bank argues that it conducted its business in good faith and was unaware of the fraud. However, only a fraction of the attached properties have been released so far, prompting the bank to request the speedy disposal of the assets. The court will now await the prosecution’s reply before making a decision on the matter.
