DRT tells Nirav to pay Rs 7,200 cr

Pune: In fresh trouble for fugitive diamond merchant Nirav Modi, who is currently lodged in a London prison, the Debt Recovery Tribunal (DRT), Pune, on Saturday directed him and his aides to pay more than Rs 7,200 crore with interest to Punjab National Bank (PNB) and a consortium of banks. 

Modi (48) is wanted in India as the main accused in the PNB fraud and money laundering case amounting up to USD 2 billion. They had availed loans through fraudulent Letters of Undertakings (LoUs). The Pune bench of DRT, which also holds additional charge of Mumbai, passed the order in two cases filed by PNB. The Presiding Officer, Deepak Thakkar, has allowed the petitions filed by the PNB. 

“Defendant and his partners are ordered and directed to pay to the applicant (PNB) either jointly or severally the aggregate sum of Rs 7029,06,87,950.65 with interest of 14.30 per cent per annum from June 30, 2018,” stated the DRT order.

Passing another order, judge directed Modi and others to pay Rs 232,15,92,636 to PNB with interest 16.20 per cent from July 27, 2018. 

According to officials, PNB was the first to approach the DRT last July against Nirav Modi to seek recovery of Rs 7,000 crore. The consortium of banks had filed a separate application for recovery of over Rs 200 crore later. DRT has issued the recovery certificates based on which now the bank’s recovery officer can proceed to attach Modi’s properties, if necessary. However, most of Modi’s assets have been attached by the Enforcement Directorate (ED). 

Modi was arrested by uniformed Scotland Yard officers in central London on March 19. He faces extradition to India as the ‘principal beneficiary’ of the fraudulent issuance of letters of undertaking (LoUs) as part of a conspiracy to defraud PNB and then laundering the proceeds of crime. The diamantaire has been behind bars at one of England’s most overcrowded prisons - Her Majesty’s Prison (HMP) Wandsworth.