With govt dues, employees and creditors to be given preference after recovery of money, the bank may or may not get what itu00c3u00a2u00c2u0080u00c2u0099s lost
Nirav Modi
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This is the price Punjab National Bank (PNB) will have to pay for being a part of the Rs 11,400-crore Nirav Modi scam: it may or may not get back the money it has lost, as preference will be given to government dues, and the money owed to his employees, creditors and landlords.
Real estate sources said the Nirav Modi showroom in Kalaghoda, on a space of 4,000 sqft, had been taken on rent by the diamantaire for Rs 20 lakh/month and six-month deposit. Investigating agencies have already inspected the premises and sealed it for further investigation.
"We have learnt that he was paying a monthly rent of Rs 20 lakh, which includes a deposit of six months' rent," said a businessman whose office is near the showroom. When asked, if he had ever seen or met Nirav at the outlet, the businessman replied in the negative, saying he seldom visited the plush showroom.
'Public interest first'
Senior property consultant advocate Vinod Sampat, when asked about the right of the landlord in such a situation, said it would be protected by the tenancy agreement that he might have entered into with Nirav's company.
"He can always go to court and get the investigating agency to return his property, though the process may take some time. Also, the landlord can claim his right over the deposit that Nirav paid at the time of renting it," he added.
Noted criminal lawyer Majeed Memon explained, "In situation like this, where the common man's interest is likely to be affected, the court's priority will always be the innocent. If the probe agency has exceeded its power in the course of investigation by jeopardising the interests of innocent people, they can approach the court, which will justly examine their grievances."
Chartered accountant Vimal Punamiya said, "Almost all Mumbai and Delhi outlets of Nirav Modi are rented spaces. This means the landlords have a long wait ahead of them till the court finally decides to return their properties to them. And due to the magnitude of the scam, this case will be strictly scrutinised even by the courts.
"Like the Harshad Mehta scam, where the banks could hardly get their money back, even in this case, PNB may not get its dues. Ultimately, it is public money at stake, and priority will be government dues, followed by employees and creditors; at last, whatever is left will be used to clear the bank's dues."
A regular irregularity?
However, IPS officer-turned-lawyer Y P Singh said, "The Nirav Modi incident is a regular market practice — to raise funds with unacceptable documents and pay back later, thereby causing temporary misappropriation of funds. The chain continues, provided the borrower keeps his promise of repaying within the stipulated time period. The chain is disturbed in case of a default, and when the matter is exposed, law enforcement agencies begin probe, the way it happened in this case. The entire episode is looked on as a scam, which is actually rampant banking irregularities, wherein staffers and borrowers work in nexus, a practice which needs to be probed."
Also read: PNB scam: ED asks Nirav Modi, Mehul Choksi to appear before it on February 22
I-T slaps fresh charges
The I-T department has slapped fresh charges under the new anti-black money law against Nirav Modi for allegedly holding an illegal asset abroad, official sources said, adding, this is the second overseas asset that the taxman suspects has not been disclosed to it by the diamantaire. It is suspected to be a trust registered in Jersey, located near the coast of Normandy. The business trust is being probed for routing funds with alleged links to Nirav. The department had last week slapped sections of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, on Nirav after detecting a bank account in Singapore, allegedly held by him and not disclosed to the tax authorities.
2.2k
No. of Nirav Modi's employees awaiting dues
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