Breaking News Special court in Mumbai allows restoration of Nirav Modi’s...

Special court in Mumbai allows restoration of Nirav Modi’s assets worth Rs 440 crore, seized by ED, to Punjab National Bank


New Delhi, Aug 20 (ILNS) A Special Court in Mumbai today allowed the restoration of Nirav Modi’s assets worth Rs 440 crore to the Punjab National Bank (PNB), which was seized by the Enforcement Directorate (ED).

Nirav Modi and his uncle Mehul Choksi are accused of fraudulently availing credit facilities from the public sector bank PNB to the tune of Rs 14,000 crore.

During its probe, the ED attached several properties owned by Nirav Modi. Several of the properties were confiscated after he was declared a “fugitive economic offender” in December, 2019.

The order was passed by V. C. Barde, Special Judge for Prevention of Money Laundering Act (PML Act) on August 13.

PNB had filed several applications in July 2021, seeking the return of properties that were mortgaged to the bank for providing credit facilities to Nirav Modi’s two companies – Firestar Diamond International Private Limited (FDIPL) and Firestar International (FIL). PNB had filed the application as the individual plaintiff and the principal bank of PNB consortium and as the authorised representative of UBI consortium.

PNB, along with a consortium of banks, has approached the Court in the prosecution, under Section 8(8) and Section 8(7) of PML Act for release of the property attached by E.D.

Section 8(7) of PML Act deals with passing appropriate orders of confiscation or release of property in respect of which the Adjudicating Authority has confirmed attachment under Section 8(3).

Section 8(7) runs as under: “(7) Where the trial under this Act cannot be conducted by reason of the death of the accused or the accused being declared a proclaimed offender or for any other reason or having commenced but could not be concluded, the Special Court shall, on an application moved by the Director or a person claiming to be entitled to possession of a property in respect of which an order has been passed under sub-section (3) of section 8, pass appropriate orders regarding confiscation or release of the property, as the case may be, involved in the offence of money-laundering after having regard to the material before it.

Section 8(8) of P.M.L. Act deals with direction to the Central Government to restore any confiscated property to the legitimate Claimant, which runs as under: “(8) Where a property stands confiscated to the Central Government under sub-section (5), the Special Court, in such manner as may be prescribed, may also direct the Central Government to restore such confiscated property or part thereof a claimant with a legitimate interest in the property, who may have suffered a quantifiable loss as a result of the offence of money laundering: Provided that the Special Court shall not consider such claim unless it is satisfied that the claimant has acted in good faith and has suffered the loss despite having taken all reasonable precautions and is not involved in the offence of money laundering: Provided further that the Special Court may, if it thinks fit, consider the claim of the claimant for the purposes of restoration of such properties during the trial of the case in such manner as may be prescribed.”

A Special Judge of the Money Laundering Court said that damage caused to the claimants’ (banks) has been accepted by the Debt Recovery Tribunal (DRT), which has ruled in his favour./ILNS/SNG


Please enter your comment!
Please enter your name here

Latest news

Delhi HC expresses displeasure over prolonged sealing of Nizamuddin Markaz as center cites trans-border implication for opening it

New Delhi Sept 14(ILNS): The Ministry of Home Affairs, on Monday, filed an affidavit before the Delhi...

Delhi HC adjourns Mehbooba Mufti PMLA hearing to Sept 30, Centre to seek transfer of case to SC

New Delhi Sept 14 (ILNS) The Delhi High Court today adjourned its hearing in the plea of...

Supreme Court says Nagaraj judgment already decided policy for determining backwardness, no need to revisit it again

New Delhi Sept 14(ILNS): The Supreme Court today said it is not going to decide again policy,...

Khori Gaon: Faridabad municipal corporation assures Supreme Court of completing rehabilitation by April 30, 2022

New Delhi Sept 14(ILNS): The Supreme Court today heard a plea seeking rehabilitation for the Jhuggi dwellers...

Allahabad High Court refuses to intervene in PIL seeking stay on demolition of small temples in Vindhyachal temple corridor

Allahabad Sept 14(ILNS): The Allahabad High Court on Monday, refused to intervene on a PIL seeking a...

Supreme Court says life imprisonment means rigorous imprisonment for life, dismisses SLP

New Delhi Sept 14(ILNS): The Supreme Court has held that the sentence of life imprisonment has to...

Must read

You might also likeRELATED
Recommended to you