PNB rip-off: The Punjab National Bank (PNB) stepped up initiatives to recover its dues from fugitive diamond service provider Nirav Modi, who’s accused of duping the financial institution. The financial institution on Wednesday moved an software earlier than a particular court in Mumbai seeking restoration of the Rs 71 crore value property owned by Modi in order that it may well proceed to recover a component of its dues.Â
The financial institution urged the court to launch the properties seized by the probe businesses.
Rs 14,000 crore rip-off
Nirav Modi and his uncle Mehul Choksi are accused of committing a Rs 14,000 crore rip-off by acquiring credit score services fraudulently from the PNB. Modi’s properties in addition to that of his kin had been hooked up by the Enforcement Directorate beneath the provisions of the Prevention of Money Laundering Act. He was declared a ‘fugitive financial offender’ in December 2019.
The plea stated that the PNB consortium and UBI consortium have at all times performed their enterprise in good religion within the regular course of banking actions and had been unaware of the fraud after they disbursed loans to the Nirav Modi corporations.
At current, solely Rs 1,066.41 crore of properties have been launched from attachment beneath the PMLA and this worth is grossly inadequate to meet the quantifiable loss, it stated. The claimants are public sector banks, the quantity sought to be recovered is public cash, it stated.
The software stated that some of the property hooked up by the ED are amenable to market fluctuations and any delay in liquidating them could scale back their worth.
Hence, there’s a direct want for the speedy disposal of the property to realise their finest worth, it added.
Some of the properties are valuables owned Firetstar Diamond Ltd, jewelry value Rs 35.52 lakh, 8 automobiles, together with a Bentley owned by Nirav Modi. The complete worth of properties sought to be restored are Rs 71.16 crore.
The court requested the prosecution to file its reply by July 25.
(With PTI inputs)
