Nirav Modi's sister seeks ED intervention in bankruptcy proceedings against him in US

Mumbai, Apr 20: Purvi Mehta, PNB scam accused Nirav Modi's sister, has approached the special Fugitive Economic Offenders (FEO) Act court here seeking a direction to the Enforcement Directorate to intervene in the bankruptcy proceedings which are underway against him in the US.

Nirav Modi, the main accused in the Rs 13,000 crore Punjab National Bank (PNB) scam, was declared a Fugitive Economic Offender in December 2019. He is currently lodged in a UK prison. In June 2020, the special court for Prevention of Money Laundering Act (PMLA) here ordered the confiscation of his properties which the ED claimed had been bought using proceedings of the crime.

Last month, Purvi Mehta approached the FEO Act court stating that she had been made a defendant in bankruptcy proceedings against her brother in a US court. It means her properties are also being considered by the US court and its proceedings overlap with proceedings in India related to her, Mehta's plea said.

The ED should be directed to intervene in the case before the US court, and seek injunction at least with respect to assets concerning her, her application said. Further, the PNB should be directed to communicate to the trustee of the US proceedings to refrain from continuing them to avoid "multiplicity of proceedings and possible double jeopardy", Mehta said.

The ED told the FEO Act court here on Wednesday that it has already submitted relevant documents before the US court. The Central agency said the applications for confiscation of Nirav Modi's properties including those belonging to Purvi Mehta and located in the US have been placed before the US court. The hearing will continue before special FEO Act court judge V C Barde here.

Nirav Modi and his uncle Mehul Choksi, owners of prominent jewelry firms, are accused of cheating the PNB, a nationalized bank, of Rs 13,000 crore by fraudulently obtaining Letters of Undertaking which act as bank guarantee while taking loans in foreign countries.

Purvi Modi alias Purvi Mehta (47) and her husband Maiank Mehta were made approvers in the case in January 2021 on the condition of making full and true disclosure before the court.