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Unable To Release Money From Nirav Modi's Firm Account, Banks To Court
The special court will hear the matter for passing orders on February 23
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Responding to an affidavit, two banks told the special Prevention of Money Laundering Act (PMLA) they were not able to release money from the accounts of a firm owned by fugitive diamond trader Nirav Modi on Thursday.
The affidavit was filed by official liquidator with the claims that three banks were yet to release Rs 37 crore from the accounts of Modi's firm’s, namely Firestar International for the recovery of debts.
The liquidator, appointed by National Company Law Tribunal (NCLT) has claimed that Firestar International had a deposit of Rs 2.67 crore with Kotak Mahindra Bank, Rs 17.98 crore with Union Bank of India and Rs 16.32 crore with Bank of Maharashtra.
As per court directions on 13 August 2021, officials reached to the bank to release the money in favour of the liquidator, but expressed their inability to do so, the affidavit read.
Kotak Mahindra Bank has said that Modi's firm account was attached by income tax department and a day later by the Enforcement Directorate (ED) to probe the money laundering charges against him and his Firestar group firms.
The bank said that they were left with no choice but to make the payment from the firm's account as the dues were statutory. Non-payment of the dues could have grave consequences.
The special court will hear the matter for passing orders on February 23.