PNB scam: Court allows confiscation of Nirav Modi's assets

Punjab National Bank offers customers 4.5 percent interest on deposits less than Rs 2 crore. Senior citizens earn 5.25 percent. Those depositing between Rs 2 crore to Rs 10 crore earn an interest of 3.25 percent.

A special court here on Monday allowed confiscation of assets owned by diamantaire Nirav Modi, a key accused in the multi-crore Punjab National Bank (PNB) scam, under the Fugitive Economic Offenders Act (FEOA).

This is the first order of confiscation passed under the FEO Act,enacted two years ago, anywhere in the country.

Special Judge V C Barde permitted the Enforcement Directorate (ED) to confiscate those assets owned by Nirav Modi that are not mortgaged or hypothecated to the PNB.

The court, in its order, said the assets shall be attached by the ED under the provisions of the FEO Act within one month.

After that, the said properties/assets shall stand confiscated to the Central government under section 12(2) and 8 of the FEO Act, the judge said.

Senior advocate Nitesh Jain from Shardul Amarchand Mangaldas law firm, who appeared for PNB, said the court has allowed those assets that have not been mortgaged, secured or hypothecated to the bank to be confiscated.