New Delhi: A Mumbai court earlier this week allowed the Enforcement Directorate (ED) to auction three high-end cars belonging to fugitive diamantaire Nirav Modi.
The agency had sought auction of the cars, including two Mercedes-Benz and a Skoda, citing depreciation in their value and the absence of an immediate prospect of trial commencing, with a majority of the accused absconding abroad.
The three cars, valued at over Rs 1 crore, were attached as part of proceedings against Modi in the bank fraud case against Punjab National Bank (PNB). Modi, along with his uncle Mehul Choksi and several others, including PNB officials, was accused of hatching a conspiracy to defraud the PNB of Rs 12,600 crore.
Both Modi and Choksi fled India before the Central Bureau of Investigation (CBI) filed a case against them in the bank fraud case. While Choksi’s plea challenging his extradition is pending before Belgium’s Supreme Court, Modi has challenged his extradition before the United Kingdom High Court.
The ED had earlier confiscated these cars under the provisions of the Fugitive Economic Offenders Act (FEOA), 2018, after Modi was declared a fugitive economic offender in December 2019.
In October, it filed a plea stating that these vehicles have been lying idle, that their value would decrease over time, and that they would be damaged if kept idle till the disposal of the case. The agency submitted that most of the accused persons, including Modi, have been absconding and that there is no prospect of the trial commencing in the near future.
“The total value of the attached vehicles is shown as Rs 10,050,000. As pointed above, the above said vehicles were attached and confiscated under FEOA. The vehicles since attachment are lying idle. If these vehicles are kept idle till the disposal of the case, then the value of these vehicles would decrease and even these vehicles would be damaged. Most of the accused are absconding and therefore, there is no immediate prospect of commencement of trial,” Special Judge A.V.Gujarathi observed in the order.
The costs for maintenance of the vehicles would be more than the value of the vehicles, the judge said. “Considering all these aspects, it is just and proper to consider the application in order to protect the depreciation of the value of the vehicles. Hence, the application deserves to be allowed.”
The judge further ordered that the ED should follow the rules and established procedures for the auction of the cars, and that the proceeds from the process should be deposited as a fixed deposit with the State Bank of India (SBI), or any nationalised bank.
During proceedings against Modi under the provisions of the 2018 Act, the ED has confiscated movable and immovable assets worth Rs 692.90 crore. It has also restored assets worth Rs 1,000 crore to the PNB Bank, so far.
(Edited by Tony Rai)
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