Bombay HC Issues Notice To PNB Whether Nirav Modi’s Seized Properties Be Handed Over To ED

The Bombay High Court has recently sought a response from the Punjab National Bank (PNB), fugitive diamond dealer Nirav Modi, and others on a petition filed by the Enforcement Directorate (ED).

The ED has challenged the order of a special court judgement allowing PNB to seize nine assets worth Rs 424 crore in a loan case involving fugitive businessman Nirav Modi. The special court previously allowed the ED to seize 12 properties valued more than Rs 500 crores on October 19, 2022.

Aside from the hypothecated properties, some of the properties confiscated by the ED were freeholds that the PNB had been claiming.

In its ruling, the special court permitted the attachment of nine of Nirav Modi’s twelve properties to PNB. On November 17, the order was modified, and PNB was granted access to a few additional assets in addition to the nine secured assets. The ED challenged this in the Bombay High Court.

The ED’s advocate, Ayush Kedia, claimed that while the secured creditor was entitled to the secured assets, it was not entitled to the unsecured assets. Kedia argued that the State had first right over the unsecured or freehold assets.

PNB’s counsel, Advocate Lalan Gupta, alleged that the bank had loaned a large sum to Modi and his firms. He argued that it was public money and stated that the bank’s financial position had suffered as a result of the loan’s non-payment. Gupta emphasised that PNB was also contesting the order, though it was unclear whether the grounds were tenable.

A division bench of Justices SB Shukre and Kamal Khata determined that the petition should be heard on the merits of the matter. The bench agreed to issue notice on all respondents to the ED’s petition, including Nirav Modi, and the case was adjourned for a hearing three weeks later.