By Quaid Najmi Mumbai 19 August : The Debt Recovery Tribunal I (DRT-I) is directing the sale of the most valuable property belonging to diamantaire Nirav D.Modi in one of the cases brought by Punjab National Bank (PNB) to collect a portion of their massive debts of over Rs.2,133-crore.
According to Mumbai DRT-I’s directive, HCL House in Marol will be offered for auction on the 23rd of September, with a reserve price of 52 crores against the huge sums that remain for nearly five years to PNB and 15 banks.
“Proclamation of sale under Rules 38, 52(2) of the second schedule to the Income Tax Act, 1961 as it is interpreted with the Recovery of Debts Due to Banks and Financial Institutions Act 1993.” was the order issued on August 11, 1993 issued by the Recovery Officer Ajeet Tripathi.
The case involves PNB together with 15 banks from the private and public sector against Nirav Modi’s company group Firestar International Ltd.and other new or known entities who are recoverable.
The latest auction is in the process of recovery initiated by a variety of banks following the notorious PNB fraud of more than 14,000 crore that erupted in the Indian banking sector in February of this year nearly one month after Modi and his wife Ami and other escaped India (January 2018).
In response to a complaint from the PNB, the Central Bureau of Investigation lodged the first offenders in January 2018.
other agencies such as Enforcement Directorate, Income Tax Department also joined in the game, pursuing the two principal suspects -Modi and his mother Mehul Choksi Modi and his maternal uncle Mehul Choksi, as well as a variety of other bank employees.
The companies that make up the group of Firestar International Ltd, include Firestone Trading Pvt.Ltd., Radashir Jewellery Co.Ltd and Paundra Enterprises Pvt.Ltd.All three are located in one office in Bharat Diamond Bourse in Bandra east.
A few new entities have been created for the first time: Bentley Properties Pvt.Ltd., Mak Business Enterprises Pvt.Ltd., ANM Enterprises Pvt.Ltd., NDM Enterprises Pvt.Ltd.In addition, Neeshal Trading Pvt.Ltd.Curiously, all are listed as sharing a single address of No.15, Nagindas Mansion in Opera House, south Mumbai.
Firestar International’s (Lower Parel) Directors are Modi, Angelina Nguyen and Haresh Vrajlal Shah.
Modi is also a director with Radashir Jewelery (Bandra) together with Hemant Dahyalal Bhatt.
The Directors of other companies, with most featuring in one or more entities include: Ramesh M.Assar, Ketan C.Solanki, Manish L.Dani and Paresh P.Rathod.
Through July 2022, several agencies, including the ED have seized Modi’s properties to the tune of more than Rs 2,650 crore while he defends himself against extradition hearings in London and other cities.Moreover, certain assets, including bungalows, plotsof land, factories, luxury vehicles and art work that is expensive.They are regularly auctioned by various investigation agencies to collect a portion of the staggering debts owed to banks.
Modi’s uncle Choksi of the Gitanjali Gems Group, also the principal co-accused in the PNB bank fraud is in Antigua & Barbuda.
For the auction scheduled for September 23 of HCL House, the DRT-I has outlined the possibility of a refunded EMD of 5.20 crore.5.20 crore with the physical verification of the property being held for September 19 and the closing date for submitting bids or EMD with an increase of 20 lakhs on or before September 21.
However, no specifics of the revenue derived from a portion or the entire property and additional liabilities, encumbrances, or claims against the asset are available.
(Quaid Najmi may be contacted via q.najmi@ians.in)
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