Nirav Modi's sister moves court to intervene in bankruptcy proceedings in US

PUNJAB National Bank scam accused Nirav Modi's sister has approached a special court in Mumbai seeking a direction to the Enforcement Directorate (ED) to intervene in the bankruptcy proceedings against him in the US.

Last month, Purvi Mehta moved the special Fugitive Economic Offenders (FEO) Act court stating that she had been made a defendant in bankruptcy proceedings against her brother in a US court.

According to Mehta's plea, her properties are also being considered by the US court and its proceedings overlap with proceedings in India related to her.

Her application seeks ED's intervention in the case, and requests to block further proceedings against her assets.

In her petition, Mehta said that 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".

The ED told the FEO Act court on Wednesday (20) that it has already submitted relevant documents before the US court.

The Central agency said the applications for confiscation of 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 the special court judge V C Barde.

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.

Modi, the main accused in the £1.5 billion 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.

Modi and his uncle Mehul Choksi are accused of cheating the PNB by fraudulently obtaining Letters of Undertaking which act as bank guarantee while taking loans in foreign countries.

(PTI)