PNB loan fraud: Nirav Modi's Pune flats to be auctioned in February 2023, says report

Diamantaire Nirav D. Modi, who is accused in the Punjab National Bank fraud case, will see two of his prime properties in Pune go under the hammer in February 2023 to recover dues in the fraud case. The Debt Recovery Tribunal-I (DRT-I), Mumbai, Recovery Officer Ashu Kumar has ordered the e-auction of the two properties, an IANS report said.  The order was issued on December 28 and was addressed to Stellar Diamonds, Solar Exports, Diamond R US, ANM Enterprises Pvt. Ltd, NDM Enterprises Pvt. Ltd.   

Nirav Modi and Mehul Choksi are the two prime accused in the multi-crore bank fraud case. They are facing a probe by the Enforcement Directorate (ED) and the Central Bureau of Investigation (CBI).  The auction of these properties is being done to recover some part of the PNB's staggering bad loan of over Rs 11,653 crore.  

The properties are two adjoining flats on the F1 building, 16th floor of the YOOPUNE housing scheme at Hadapsar, Pune, which are about measuring 398 sq. metres and 396 sq. metres. The PNB has set a reserve price of Rs 8.99 crore and Rs 8.93 crore, respectively, for these two flats. 

The DRT-I has also issued notices to owners, directors like Nirav D. Modi, Ami Nirav Modi, Rohin N. Modi, Ananya N. Modi, Apasha N. Modi, Purvi Mayank Mehta, Deepak K. Modi, Neeshal D. Modi and Nehal D. Modi, as they are certified debtors of the PNB owing a massive amount of Rs 7,029-crore. 

The e-auction may help the PNB and around 15 other banks recover a small portion of the outstanding bad loan, which has been due for the past five years since the country's mega-banking scam came to light in February 2018. Nirav Modi, his wife Ami, and others reportedly fled India in January that year. 

Earlier this month, Modi lost his bid to take his extradition fight to the UK Supreme Court after losing the case in the UK High Court. The UK High court dismissed his appeal in November and ordered his extradition to India. The HC refused Modi’s application to certify a “point of law of general public importance” and rejected his application for permission to appeal to the Supreme Court, Reuters reported. 

In March 2019, Modi was arrested in London at requests moved by Indian investigating agencies. Since then, he has been lodged at the Wandsworth prison in south-east London. 

India submitted requests for Modi’s extradition on 27 July 2018 in relation to the CBI proceedings and 24 August 2018 in relation to the ED proceedings. The requests were certified by the UK Home Office on 28 February 2019.