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HomeNationalNirav Modi case: Court pulls up banks for disobeying its orders MIGMG...

Nirav Modi case: Court pulls up banks for disobeying its orders MIGMG News

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A SPECIAL court has pulled up multiple banks for not complying with its orders to release certain properties belonging to fugitive diamond merchant Nirav Modi’s company. Two separate applications were moved by the liquidator alleging that court orders passed in 2021 were not complied with by the banks despite repeated notices.

In 2021, as part of proceedings against Modi under the Fugitive Economic Offenders Act, the court said certain properties would be released in favor of the claimant, Punjab National Bank, through the appointed liquidator.

In court filings, he was told that some banks did not comply with the orders. It also mentioned that Kotak Mahindra Bank, which was informed to unfreeze the account of Firestar Diamond International Pvt Ltd, instead transferred Rs 2.46 crore to the State Bank of India as per the order of the Commissioner of Income Tax.

He stated that now only Rs 237.74 lying in the account has been transferred to the liquidator.

The court said that although the provisions of the Prevention of Money Laundering Act have the upper hand, the amount is paid to income tax. Similarly, Union Bank of India transferred Rs 17 crore but not the remaining amount and Bank of Maharashtra transferred the amount towards the outstanding loan amount and closed the accounts of the company.


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