According to reports, two banks have notified a special PMLA court that they are unable to release funds held in the accounts of a company owned by fugitive diamond trader Nirav Modi.
According to the lenders, the funds are in the account of Nirav Modi’s Firestar International Limited.
According to a report by Hindustan Times, Livemint’s sister newspaper, the official liquidator has submitted an affidavit claiming that three banks have yet to pay ₹37 crore from Nirav’s business account towards the collection debts. The liquidator was appointed by the National Company Law Tribunal.
According to the affidavit, the business held a deposit of ₹2.67 crore with Kotak Mahindra Bank, ₹17.98 crore with Union Bank of India, and ₹16.32 crore with Bank of Maharashtra in October 2022.
In August, the court ordered the banks to surrender the funds in favour of the liquidator under the Prevention of Money Laundering Act (PMLA).
However, according to the affidavit, the banks stated that they were unable to release the funds.
According to Kotak Mahindra Bank, the firm’s account was initially attached by the Income Tax Department and then by the Enforcement Directorate a day later. The agencies are looking into money laundering allegations against Modi and his Firestar Group companies.
“We had no choice but to make the payment (from the company’s account) as the dues were statutory and if they were not paid there would be grave consequences. Therefore, a demand draft of ₹2.46 crore was issued in favour of the department,” Kotak Mahindra Bank said.
The Bank of Maharashtra, on the other hand, told HT that the money in the firm’s credit balance had been changed against a loan account.
The case has been scheduled for a decision on February 23rd.
