PNB scam: Court clears release of Nirav Modi's ₹66.3 cr assets for recovery

A special court in Mumbai has permitted the release of properties valued at ₹66.33 crore, belonging to fugitive jeweller Nirav Modi and his sister Purvi Modi. These assets had been attached by the Enforcement Directorate (ED) as part of the money laundering investigation in the Punjab National Bank (PNB) scam.
The court approved a request made by PNB to release the assets so they could be sold or auctioned to recover the losses caused by the fraud. The ED had initially attached the properties while investigating Modi and others in the multi-crore bank fraud.
Special Judge AV Gujarathi, who heard cases under the Prevention of Money Laundering Act (PMLA), passed the order on June 17. The judge also directed PNB to provide an undertaking confirming that the amount earned from the sale would be recovered if needed in future.
The assets consist of jewellery, coins, watches, and cash found at Nirav Modi's residence in Samudra Mahal, Worli, Mumbai, worth ₹40.83 crore. There is also a flat valued at ₹19.50 crore in Purvi Modi's name and other movable items found at the same address. The total loss reported by a consortium of banks, led by PNB, exceeds ₹8,526 crore — much higher than the value of attached properties, which total approximately ₹2,324.97 crore.
ED raises no objection to release
The ED informed the court that it had no objection to releasing the assets, provided certain conditions were met. After reviewing the submissions, the judge noted that Nirav Modi remains a fugitive and granted PNB's request to release the properties.
Nirav Modi and his uncle Mehul Choksi are the main accused in the ₹13,500-crore PNB scam. While Choksi is facing legal proceedings in Belgium, Modi has been in a UK prison since 2019.
Earlier on May 15, 2025, the UK High Court had once again denied bail to Nirav Modi, marking his tenth unsuccessful attempt since his arrest in 2019.
The Enforcement Directorate posted on X: "The UK High Court has once again refused to grant bail to Nirav Modi, the mastermind of the $1 billion fraud against PNB, while hearing his fourth bail application on Thursday, 15/05/2025."
The agency further said: "After detailed deliberations on the arguments of the defence (Nirav Modi) and counter arguments of the prosecution (Government of India), written submissions by the ED (which highlighted the money laundering aspects of laundering of proceeds through shell companies to external jurisdictions including the UK) and considering the extent of fraud (part of which has already been attached/confiscated by the ED and returned to the victim banks), the UK High Court dismissed the application and refused to grant bail to Nirav Modi."
The Central Bureau of Investigation (CBI) confirmed the decision in a press statement: "Fresh Bail Petition filed by Nirav Deepak Modi was rejected by the High Court of Justice, King's Bench Division, London. The bail arguments were strongly opposed by the Crown Prosecution Service advocate who was ably assisted by a strong CBI team consisting of investigating and law officers who travelled to London for this purpose."
The CBI added: "CBI could successfully defend the arguments which resulted in rejection of the bail. Nirav Deepak Modi has been in UK prison since 19th March 2019. It may be recalled that Neerav Modi is a fugitive economic offender who is wanted for Trial in India in a Bank fraud case of CBI for defrauding Punjab National Bank for Rs. 6498.20 crore... This is his 10th bail petition since his detention in the UK which was successfully defended by CBI through Crown Prosecution Service, London."
Extradition approved
Nirav Modi was arrested in the UK in March 2019. The UK High Court has already approved his extradition to India. The ED filed its money laundering case against him and Mehul Choksi in 2018, and multiple assets have since been seized. Modi's efforts to block extradition, including a petition to the UK Supreme Court in 2022, have all failed.

Try Our AI Features

Explore what Daily8 AI can do for you:

Learn with AIFact CheckingText to SpeechAI Summary

Related Articles

Indian Express

an hour ago

• Indian Express

ED retreats after uproar, withdraws summons to top advocates

Under fire from the legal fraternity over its summons to Senior Advocates Pratap Venugopal and Arvind Datar in connection with a case in which they had rendered legal advice, the Enforcement Directorate said Friday it had instructed field formations not to issue summons to any advocate in violation of Section 132 of the Bhartiya Sakshya Adhiniyam, 2023 — the section deals with the confidentiality of communications between an advocate and client. Any exception necessitating the issue of summons 'shall be issued only with the prior approval of the Director, ED', the probe agency said in a statement to the press. The ED's summons to Datar and Venugopal had drawn not just criticism but also raised questions on whether such summons can dilute attorney-client privilege. The lawyers were summoned under Section 50 of the Prevention of Money Laundering Act (PMLA) in a case of alleged money laundering. It is learnt that Datar wrote to the agency, expressing his inability to respond to the summons, citing attorney-client privilege. Sources in the ED told The Indian Express that the summons to Datar had 'expired' and no fresh summons had been issued. Venugopal received a communication from the ED, clarifying that the summons for June 24 had been 'withdrawn'. Non-compliance of summons by the ED is an offence under the PMLA. However, lawyers are protected under evidentiary laws from being compelled to issue statements or testify against their clients. Advocate Vipin Nair, President of the Supreme Court Advocates-on-Record Association, wrote to Chief Justice of India B R Gavai, urging him to take suo motu action against the ED. 'These actions, by the ED, we believe, amount to an impermissible transgression of the sacrosanct lawyer-client privilege, and pose a serious threat to the autonomy and fearless functioning of advocates. Such unwarranted and coercive measures against senior members of the Bar for discharge of professional duties set a dangerous precedent, potentially resulting in a chilling effect across the legal community,' Nair wrote. The Supreme Court Bar Association (SCBA) too condemned the ED summons to Venugopal and Datar, saying the actions 'reflect a disturbing trend, striking at the very foundations of the legal profession and undermining the independence of the Bar' and also reflect 'an illegal, perverse and intimidatory use of state power'. A statement issued by Advocate Pragya Baghel said 'the Executive Committee of… SCBA unanimously resolved and expresses its deep anguish, concern and unequivocal condemnation of the action taken by the Enforcement Directorate (ED) in summoning and issuance of Notice to Mr. Pratap Venugopal, Senior Advocate and member of SCBA, for the services rendered in discharge of professional duty.' On Friday, in its statement to the press, the ED said, 'The Mumbai Branch of ED is conducting a money-laundering investigation in which it has been alleged that shares of M/s Care Health Insurance Ltd (CHIL) were issued at a much lower price in the form of ESOPs on 1st May, 2022, in spite of the rejection of the same by Insurance Regulatory and Development Authority of India (IRDAI).' 'As part of investigation, a summons was issued to Shri Pratap Venugopal, an Independent Director of CHIL, to understand the circumstances under which the company has issued the ESOPs despite its rejection by IRDAI and subsequent discussions in the Board of CHIL in this regard. It is also pertinent to note that IRDAI on 23.07.2024 had directed the CHIL to revoke or cancel any ESOPs that have yet to be allotted and has also imposed a penalty of Rs 1 crore on CHIL for non-compliance with regulatory directions,' the ED said. 'In view of the fact that Shri Pratap Venugopal is a Senior Advocate in the Hon'ble Supreme Court, the summons issued to him has been withdrawn and same has been communicated to him. In the said communication, it has also been stated that if any documents will be required from him in his capacity as an Independent Director of CHIL, the same will be requested from him to be submitted by email,' it said. 'Further, the ED has also issued a circular for the guidance of the field formations that no summons shall be issued to any Advocate in violation of Section 132 of the Bhartiya Sakshya Adhiniyam, 2023. Further, if any summons needs to be issued under the exceptions carved out in proviso to section 132 of the BSA, 2023, the same shall be issued only with the prior approval of the Director, ED,' the agency said. — With ENS inputs Apurva Vishwanath is the National Legal Editor of The Indian Express in New Delhi. She graduated with a B.A., LL. B (Hons) from Dr Ram Manohar Lohiya National Law University, Lucknow. She joined the newspaper in 2019 and in her current role, oversees the newspapers coverage of legal issues. She also closely tracks judicial appointments. Prior to her role at the Indian Express, she has worked with ThePrint and Mint. ... Read More

Time of India

2 hours ago

• Time of India

HC clears Bhujbal's CA in money laundering case

Mumbai: Bombay HC recently discharged the chartered accountant of state minister and NCP leader Chhagan Bhujbal and his family, in a money laundering case. Justice R N Laddha set aside a special judge's March 2021 order that rejected the discharge application of the CA, Shyam Malpani (62). ED had registered a case under PMLA against the Bhujbals in connection with allegations of receiving kickbacks in the construction of Maharashtra Sadan. It alleged Malpani actively participated in the offence of money laundering through acts of omission and commission while serving as a CA for entities controlled by the Bhujbals. He was responsible for auditing their finances and was aware of suspicious and sham transactions, it said. He failed to exercise due diligence as an auditor and by his inaction, he enabled the Bhujbals to accumulate and launder illicit funds, it added. Senior advocate Pranav Badheka for Malpani said he was neither named an accused nor chargesheeted in any of the offences. Malpani audited the accounts only for March 2012-15, whereas the alleged proceeds of crime were from 2007-08, he said. Badheka said an auditor is not supposed to function as an investigator nor obliged to scrutinise every transaction in the company's books. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Windows Users & Owners Don't Forget To Do This Before Friday Read More Undo Justice Laddha noted that there was no substantive material on record to show that Malpani had any knowledge of the sham transactions or was negligent in the discharge of his duties. "The complaint lacks material to establish a nexus between the applicant and the alleged criminal conspiracy or money laundering activities. Moreover, the applicant has neither been named nor chargesheeted in the related crimes, which further reinforces the absence of any direct or indirect involvement. " He agreed with Badheka that the absence of due diligence, even if presumed, does not amount to the commission or omission of an offence under PMLA Section 3 (money laundering). Malpani was not a beneficiary of the proceeds of crime, he noted.

India Today

3 hours ago

• India Today

CBI arrests government bank manager in Rs 183 crore fake bank guarantee scam

In a major financial fraud case involving forged bank guarantees worth Rs 183.21 crore, the Central Bureau of Investigation (CBI) has arrested two individuals, including a Senior Manager of Punjab National Bank (PNB), in connection with a scam involving an Indore-based company and the Madhya Pradesh Jal Nigam Limited (MPJNL).According to CBI, the Indore-based firm had secured three large irrigation projects worth Rs 974 crore in 2023 from MPJNL by submitting eight fake bank guarantees, purportedly issued by PNB. The MPJNL initially received forged confirmation emails that appeared to be from the official domain of PNB. These fraudulent communications falsely confirmed the authenticity of the bank guarantees, which subsequently led to MPJNL approving the a crackdown on June 19 and 20, the CBI conducted searches at 23 locations across five states, including New Delhi, West Bengal, Gujarat, Jharkhand, and Madhya Pradesh, following directives of the Madhya Pradesh High Court. The operation resulted in the arrest of two individuals from Kolkata, including a serving senior manager of Punjab National Bank. Both the accused were presented before a local court in Kolkata and have been granted transit remand. Preliminary findings suggest that a well-organised Kolkata-based syndicate has been actively engaged in fabricating and distributing fake bank guarantees to win lucrative government contracts across multiple sources confirmed that the investigation is still ongoing in the case. Must Watch