‘Just Rs 236 in company’s a/c’: Liquidator seeks release of Nirav Modi’s funds | Mumbai News
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MUMBAI: With only Rs 236 allegedly remaining in one of the bank accounts of fugitive businessman Nirav Modi‘s Firestar Diamond International Pvt Ltd (FDIPL) after Kotak Mahindra Bank transferred Rs 2.46 crore to State Bank of India towards income tax dues and two others, Union Bank of India and Bank of Maharashtra, transferred only part of the total amount due, the liquidator appointed for the company once again moved the special court seeking release of the money. In August 2021, as part of the proceedings under the Fugitive Economic Offenders Act, the court had directed the amounts to be released to the claimant, Punjab National Bank, through the liquidator appointed with respect to FDIPL.
In response to the liquidator’s plea, the special court last week directed Union Bank of India and Bank of Maharashtra to comply with its earlier order “in strict sense and without fail” within 3 months and transferred the money in the liquidator’s account.
The court said it was clearly seen that Union Bank of India and Bank of Maharashtra acted arbitrarily and have not followed court orders. “ED (Enforcement Directorate) has also prayed for allowing this application… ED has done its duty. In fact that order (from 2021) is and was binding on all the respondents and hence there was no need to file this application for issuing directions to respondent to comply the same,” the court said. It did not issue directions to Kotak Mahindra Bank.
The liquidator told the court it had informed the Union Bank of India to transfer the amount lying in the company’s account. It was alleged that the bank did not respond to the emails. During arguments it further stated the bank transferred only Rs 17 crore to the account of liquidator but did not transfer the balance. It was alleged that the balance amount was not the exclusive security of the bank and ought to have been transferred to the liquidator.
The court said with regard to Bank of Maharashtra it prima facie appeared that in March 2021, ED had informed it to unfreeze FDIPL’s account and transfer the amount to the liquidator. “However, the bank informed that it has adjusted the amount, ie Rs 16.32 crore lying in the said account, towards outstanding loan amount or cash margin of the company and closed these accounts on March 14, 2018, as there is no balance in these. This is nothing but total disobedience of the order of ED and no permission was even obtained from the court,” the court’s order said.
In 2019, Modi and others were accused in the Rs 13,000 crore PNB fraud case. The Fugitive Economic Offenders Act was applied as Modi left the country in 2018.
In response to the liquidator’s plea, the special court last week directed Union Bank of India and Bank of Maharashtra to comply with its earlier order “in strict sense and without fail” within 3 months and transferred the money in the liquidator’s account.
The court said it was clearly seen that Union Bank of India and Bank of Maharashtra acted arbitrarily and have not followed court orders. “ED (Enforcement Directorate) has also prayed for allowing this application… ED has done its duty. In fact that order (from 2021) is and was binding on all the respondents and hence there was no need to file this application for issuing directions to respondent to comply the same,” the court said. It did not issue directions to Kotak Mahindra Bank.
The liquidator told the court it had informed the Union Bank of India to transfer the amount lying in the company’s account. It was alleged that the bank did not respond to the emails. During arguments it further stated the bank transferred only Rs 17 crore to the account of liquidator but did not transfer the balance. It was alleged that the balance amount was not the exclusive security of the bank and ought to have been transferred to the liquidator.
The court said with regard to Bank of Maharashtra it prima facie appeared that in March 2021, ED had informed it to unfreeze FDIPL’s account and transfer the amount to the liquidator. “However, the bank informed that it has adjusted the amount, ie Rs 16.32 crore lying in the said account, towards outstanding loan amount or cash margin of the company and closed these accounts on March 14, 2018, as there is no balance in these. This is nothing but total disobedience of the order of ED and no permission was even obtained from the court,” the court’s order said.
In 2019, Modi and others were accused in the Rs 13,000 crore PNB fraud case. The Fugitive Economic Offenders Act was applied as Modi left the country in 2018.
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