Court allows ED to auction Nirav Modi's Mercedes
What's the story
A special court in Mumbai has permitted the Enforcement Directorate (ED) to auction two vehicles belonging to fugitive diamantaire Nirav Modi. The court directed that the sale proceeds be deposited in a fixed deposit with a nationalized bank. Special Judge AV Gujarathi approved the sale of a Mercedes-Benz GLE250 and the re-auctioning of a Skoda Superb Elegance, noting that these assets were depreciating as the trial against Modi and other accused showed no immediate prospect of beginning.
Asset devaluation
Court's decision based on vehicles' depreciation
The court was hearing an application filed by the ED's Deputy Director under Section 15 read with Rule 4 of the Fugitive Economic Offenders Act, 2018 (FEOA). The properties were attached in a case involving offenses under Sections 3 and 4 of the Prevention of Money Laundering Act (PMLA). Special Public Prosecutor Arvind Aghav argued that these vehicles had been lying idle since their attachment and were steadily losing value.
Auction approval
Court allows sale of 2 vehicles, denies 3rd
The ED had sought permission to auction all three attached vehicles, a Skoda Superb Elegance worth ₹7,50,000, a Mercedes Benz 4Matic FL 350 CDI worth ₹54,00,000 and a Mercedes-Benz GLE250 at ₹39,00,000. However, the court allowed only two to be sold. Judge Gujarathi observed that extending the storage of seized cars would only reduce their value further. He also said the court was not required to seek Modi's response since he had been declared a fugitive economic offender.
Status
Where is Modi now
The court also noted that most accused in the case are absconding and a trial is unlikely to start soon. Modi, accused of defrauding Punjab National Bank (PNB) of ₹6,498 crore [part of a ₹13,578 crore fraud, with roughly ₹7,000 crore linked to his uncle Mehul Choksi], has been incarcerated in Wandsworth Prison on the outskirts of London since 2019. The 54-year-old fugitive is fighting an extradition battle in a UK court.