Mumbai: In a big score for Punjab National Bank Debt Recovery Tribunal (DRT) Mumbai pronounced its final order and directed Nirav Modi and his companies to pay the lender and a consortium of banks over Rs 7,200 crore with interest.
PNB was the first to approach the DRT last July against Nirav Modi to seek recovery of Rs 7,000 crore. The consortium of banks had filed a separate application for the recovery of over Rs 200 crore later.
DRT issued the recovery certificates based on which now the bank’s recovery officer can proceed to attach Nirav Modi’s properties, if necessary. But with most of Nirav Modi’s assets attached by the Enforcement Directorate (ED) it will have to be seen now how the recovery officer proceeds. He may have to move the PMLA court.
The hearing took place in Pune where a DRT member holds additional charge since there is no member in Mumbai.
The DRT also allowed another application by a consortium of banks for recovery of over Rs 200 crore from Nirav Modi and his companies.
The PNB was the first to launch, in July 2018, a legal battle to recover from Nirav Modi and his companies Rs 7,000 crore, which they availed through “fraudulent Letters of Undertakings (LoUs).”
Nirav Modi, in a letter to the bank denied they were fraudulent. The bank had filed two applications.
While Nirav Modi continues to remain jailed abroad, PNB in Mumbai has been keen to attach all his assets including not just land, a motorboat and properties in Dubai, but also the 125 art works. The art was, however, auctioned by another agency earlier.
To secure its losses, PNB through its advocates including Nitesh Jain partner of leading law firm Shardul Amarchand Mangaldas (SAM) had produced a list of Nirav Modi’s assets valued at Rs 3,402 crore before the DRT to seek orders of attachment.
The PNB has moved DRT against Nirav Modi and 15 others including his wife Ami, his brothers Neeshal and Nehal, his three children, his father Deepak Modi and his companies – Stellar Diamonds, Solar Exports, Diamond R US, Firestar International and Firestar Diamond International and ANM Enterprises.
The assets details were as prepared by chartered accountants Sampat and Mehta as on December 2017, said PNB. Nirav Modi had denied any illegality.
Also on the list of assets are three flats in Dubai valued together at 6.5 crores, one each on Singapore and Hong Kong, their values not mentioned. Apartments in the posh and pricy, Samudra Mahal, Worli, in Ami’s name, also with its value not mentioned.
Among several bank accounts, in four PNB accounts, his assets are shown together as Rs 36 lakh. In two of these accounts the amount is Rs 5,000 and Rs 9,000 only, the DRT application said.
There is only Rs 8 lakh as ‘cash in hand’ but investments in equity of ANM Enterprises and FIPL at cost are shown together as Rs 2,815 crore, the annexed assets details disclosed. There is a mention of lands at Ahmednagar and Alibag, ‘parking place at Prasad Chambers’, loans and advances worth Rs 474 crore.