07 July,2019 07:04 AM IST | Mumbai | Chaitraly Deshmukh
Nirav Modi
Pune's Debt Recovery Tribunal (DRT) on Saturday passed an order asking fugitive diamantaire Nirav Modi and his 15 aides to pay R7,300 crore with interest to Punjab National Bank (PNB). PNB had moved two separate petitions in the DRT court on September 24, 2018, against Nirav Modi, his firm, business partners and family members. The PNB has also filed a case before the Mumbai Debt Recovery Tribunal-I to recover R232 crore.
Also Read: PNB fraud: Swiss authorities freeze 4 bank accounts of Nirav and sister
The order was passed by presiding officer/judge Deepak Thakkar in two cases registered by PNB in Mumbai. The case was initially registered with the Mumbai DRT, but was transferred to DRT Pune Division I in Recovery suit in June. The reason for the transfer was attributed to the pending appointment of judges as well as PNB's request for a speedily trial. The bank had moved their application under section 19 of the Recovery of Debts under Financial Institution Act, 1993, for R7,029 crores from June 30, 2018, till the repayment.
Also Read: Nirav Modi's four swiss bank accounts worth 283 crore frozen
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The judgments was passed ex parte as no one was present on behalf of Modi or the firm. Thakkar observed that the defendants had intentionally ignored the service of summons, and their conduct remains dishonest. "Although their accounts were maintained with Axis Bank, Andheri, and PNB, Brady House, Colaba, they had laundered the money to various overseas companies and countries. It was a well planned and orchestrated fraud perpetrated by Modi."
The PNB lawyers argued that Modi had obtained 150 Letters of Undertaking (LoU) in favour of him without any sanction or approval from the requisite authority, and that the fraud was perpetrated in open defiance of the SWIFT system and Core Banking system. After the judgement, Nirav Modi can appeal in DRT Appeal court in the stipulated time frame or the DRT Mumbai's recovery officer will follow the due process as per norms.
Also Read: Nirav Modi to appear via videolink from prison for UK hearing
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