‘Only Rs 236 in company’s account’: Liquidator seeks release of Nirav’s funds India News

Mumbai: Fugitive businessman Nirav Modi’s Firestar Diamond International Pvt Ltd (FIDPL) bank account allegedly has only Rs 236 left after Kotak Mahindra Bank transferred Rs 2.46 crore. state Bank of India for income tax arrears, and two others, Union Bank of India and Bank of Maharashtra, having transferred only a part of the total dues, the liquidator appointed for the company once again moved the special court seeking release of funds. In August 2021, as part of the proceedings under the Fugitive Economic Offenders Act, the court directed the claimant, Punjab National Bank, to release the amount through the liquidator appointed in respect of FIDPL.
Responding to the liquidator’s plea, the special court last week directed Union Bank of India and Bank of Maharashtra to comply with its earlier order “in the strictest sense” within three months and transfer the money to the liquidator’s account.
The court said that it is clear that Union Bank of India and Bank of Maharashtra acted arbitrarily and did not comply with the orders of the court. “ED has also prayed for allowing this application. , , In fact that order (from 2021) was binding on all the Respondents and hence there was no need to file this application seeking direction to the Respondents,” the court said. It did not issue directions to Kotak Mahindra Bank.
The liquidator said that it had informed Union Bank of India to transfer the amount lying in the company’s account. It is alleged that the bank did not respond to the email. During the arguments, it was further stated that the bank transferred only Rs 17 crore to the liquidator’s account but did not transfer the remaining amount. It was alleged that the remaining amount was not the exclusive security of the bank and should have been transferred to the liquidator.
The court said that in respect of Bank of Maharashtra it appears prima facie in 2021, the ED had informed it to unfreeze the account of FIDPL and transfer the amount to the liquidator. “However, the bank informed that it has adjusted an amount of Rs 16.32 crore towards the outstanding loan amount or cash margin of the company and closed these accounts in 2018 as there is no balance. This is nothing but complete disobedience of the ED order.

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