A Mumbai court Yesterday (6th April), decided that the proceeds from the sale of Nirav Modi’s London property will be handed over to the Indian Government.Nirav Modi, an economic offender on the run, is confronting numerous charges in India associated with financial fraud. This ruling marks a significant step in recovering assets linked to high-profile economic crimes. The decision aligns with ongoing efforts to address financial misconduct and bring back illegally obtained funds to the country.
Mumbai: A Mumbai court on March 30, issued an order stating that the funds generated from the auction of fugitive businessman Nirav Modi’s immovable assets in London should be transferred to the Government of India.
The order issued by a special judge in response to an application filed by the Enforcement Directorate (ED), which is investigating a money laundering case involving Modi and his companies. The case revolves around allegations of diverting funds from multiple public banks.
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The ED highlighted that Nirav Modi declared a Fugitive Economic Offender (FEO) in June 2020, following which the agency sought to attach 68 properties linked to Modi worth Rs. 329 crores, including a house in London.
The ED mentioned that the London property held illegally by a ‘Deposit Trust,’ which requested winding up in the United Kingdom (UK). A UK court granted permission for the trust to sell its assets, including Modi’s house. When the ED attempted to intervene in the winding-up process, it discovered that a specific order allowing the transfer of sale proceeds to India was necessary.
Although the Mumbai court allowed the Seizure of property, it had not authorized the receipt of sale proceeds, which was essential for receiving funds from London.
As a result, the ED filed an application seeking a specific directive, which was granted by Special FEO Judge SM Menjoge on March 30.
The judge stated,
“I find that necessary clarification and modification in the order passed by this Court are imperative in the interest of justice, as otherwise, the confiscation order passed by this Court would become unexecutable or infructuous. The amount received from the sale, auction, or any other form of liquidation proceedings of the mentioned property, i.e., an immovable property situated at 103, Marathon House, 200 Marylebone Road, London NW15PL UK, shall be credited or paid to the Central Government of India, and the Central Government of India shall be entitled to receive the same,”
Read Order: [ Enforcement Directorate vs. Nirav Modi ]
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