A Mumbai court on March 30 ordered that the proceeds from the auction of fugitive businessman Nirav Modi's immovable property in London, must be transferred to the Government of India.A special judge passed the order on an application made by the Enforcement Directorate (ED) investigating the money laundering case against Modi and his companies for siphoning off funds from multiple public banks.The agency pointed out that after Nirav Modi was declared a fugitive economic offender (FEO) in June 2020, the agency had moved an application for attaching 68 properties linked to Modi valued at ₹329 crores. This also included a house located in London.ED claimed that the house was illegally held by a ‘Deposit Trust’ which had itself prayed for winding up in United Kingdom (UK). A court in UK had permitted the trust to wind up and sell its assets which includes Modi’s house. While ED sought to intervene in the winding up process, it found out that without an explicit order allowing proceeds to be received in India, it would be difficult to bring the sale proceeds within the country.It also pointed out that the Mumbai court had only permitted confiscation of property, but not receipt of sale proceeds which was required to receive sale proceeds from London.Accordingly, ED moved an application for a specific direction which was granted by the special FEO judge SM Menjoge on March 30.“I find that necessary clarification cum modification in order passed by this Court is necessary in the interest of justice otherwise order of confiscation passed by this Court would render un-executable/infructuous. Amount received from sale, auction or in any form including winding up proceeding of said property i.e an immovable property situated at 103, Marathon House,200 Marylebone Road London NW15PL UK be credited/paid to Central Govt. of India and Central Govt. of India shall be entitled to receive the same,” the judge ordered.
TAGS: Mumbai court Nirav Modi London property auction Enforcement Directorate Fugitive Economic Offender money laundering
