London court approves sale of Nirav Modi’s London luxury apartment for GBP 5.25 million or more

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London: A luxury apartment in London used by Nirav Modi and held in a trust cannot be sold for less than £5.25 million after the High Court ruled on Wednesday.

Master James Brightwell, the judge presiding over the hearing which was attended remotely by the 52-year-old fugitive diamond merchant from Thameside Prison in south-east London, asked the Enforcement Directorate (ED) to freeze the proceeds from the sale of 103 marathons. ) accepted the representation. The house is in a secure account after all “essential liabilities” of the trust have been paid.

The case involves Trident Trust Company (Singapore) Pte Ltd as the claimant, which is seeking to sell its apartment property in the Marylebone area of ​​central London, and the ED argues that the trust assets are owed by a large lender to Punjab National Bank. The scale represents the proceeds of fraud. PNB) for which Nirav is facing extradition proceedings.

Master Brightwell concluded, “I am satisfied that allowing the property to be sold for GBP 5.25 million or more is an appropriate decision.”

He noted ED’s other objections in the case relating to the creation of the trust, which were not acted upon at this stage of the case. Barrister Harish Salve, appearing for the ED, told the court that they have agreed in principle to the sale on the basis of undertakings that protect the interests of the ultimate beneficiary, which could be the Indian treasury, and “fire Prevents sales. Property.

The judge said the case was “very unusual”, involving a trust created in December 2017 in the name of Nirav Modi’s sister Purvi Modi and her family as beneficiaries.

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Purvi Modi and his adult children did not participate in the proceedings, under an agreement with Indian authorities. This left Nirav Modi, one of the named defendants in the case, claiming that he was a “true resident” of the trust and should be treated as a beneficiary. He also alleged that he gifted, or loaned, GBP 625,000 to the trust for the purchase of 103 Marathon House, which also entitled him to the proceeds of the sale.

Nirav, dressed in a casual T-shirt and sweater, followed Wednesday’s proceedings from a jail room and intervened to flag an article in ‘The Financial Times’ about another money laundering case being investigated by the ED. . It subsequently emerged in court that the current tenant of 103 Marathon House and one of the main potential buyers, who had offered to buy it for GBP 5.25 million, is an Indian-origin entrepreneur who is a suspect in the investigation.

Nirav raised concerns that any money received from such a sale could be seized by the ED at a future date, leading the court to insert a caveat in the court order that due consideration should be given to the proposed buyer.

In 2022, Nirav lost his legal battle in the Supreme Court against being extradited to India in the estimated US$2 billion PNB loan scam case. But his case is now “barred by law”, indicating pending further litigation.

In the meantime, he is appearing virtually from prison for related hearings, including pending legal costs accrued on his unsuccessful extradition appeal proceedings, or a fine of GBP 150,247.00.

Earlier this month, in another summary judgment of the High Court, a Dubai-based company linked to Nirav – Firestar Diamond FZE – was ordered to repay a Bank of India loan of over US$8 million.

Nirav Modi was arrested on March 19, 2019, on an extradition warrant based on Central Bureau of Investigation (CBI) and ED charges against the businessman. There are three sets of criminal proceedings against the diamond merchant in India – the CBI case over the fraud on PNB which caused a loss of over GBP 700 million, the ED case and the third set related to the alleged laundering of the proceeds of that fraud. Criminal proceedings involving alleged interference with evidence and witnesses in CBI proceedings.

The then UK Home Secretary Priti Patel ordered Nirav’s extradition in April 2021 based on the Westminster Magistrates Court decision of Judge Sam Goosey.

(This report has been published as part of an auto-generated syndicated wire feed. Apart from the headline, there have been no edits to the copy by ABP Live.)