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MUMBAI: The ED is in a quandary over fugitive diamantaire Nirav Modi’s three confiscated posh flats in Samudra Mahal, Worli, as, clubbed with some legal hurdles, auctioning these is unlikely to fetch the expected market price of Rs 110 crore. The government’s maintenance of the flats with expensive household items and paintings is not a viable alternative either, said officials.
ED sources stated the sea-facing flats were locked for the past five years after Nirav Modi fled the country. Converting the three into guesthouses would require huge expenses and monthly maintenance costs and make these properties more expensive than a five-star hotel stay, they said. The sources said no government official will take a personal interest in the properties for refurbishing and maintenance while ensuring household items, utensils and paintings are safe.
The ED officials discussed that since they are using late drug smuggler Iqbal Mirchi’s confiscated premises at the nearby Ceejay House building in Worli for the agency’s zone 2 office, they can use Nirav Modi’s flats as a guesthouse. But there is a hurdle in shifting the items lying inside, all the household utensils and paintings in the flats are expensive. Officials are unaware about the worth of these items and any damage may lead to a controversy.
The ED officials discussed the issue with officials in Delhi to find a way out as they fear more delay will lead to deterioration of the items’ value. But no clear option has emerged, sources said.
Nirav Modi fled the country in early 2018 after CBI and ED booked him in Punjab National Bank loan fraud case and he was declared a fugitive economic offender by court in India. In March 2019, Nirav Modi was arrested in the UK and is facing legal proceedings for extradition to India.
The ED had attached total immovable and moveable assets worth Rs 4,400 crore of Nirav Modi and his kin during the probe. The ED had handed over most of these to PNB in 2021 for auction. Most of these properties were mortgaged with the bank by Nirav Modi while seeking loan facilities. Some of the properties, including the flats in Samudra Mahal, which were not mortgaged remained with the ED and after completing the legal proceedings of confiscation they became government assets. Last year, ED initiated the process to auction his flats but decided to delay the process as his son approached a court claiming his ownership over it and PNB also requested ED to hand over these flats to them.
Last year, a leading auction house, on behalf of the ED, auctioned luxury items owned by him, including watches that fetched Rs 2.7 crore, a Desmond Lazaro’s untitled artwork for Rs 22.38 lakh, and two handbags for Rs 12.9 lakh and Rs 11.1 lakh.
ED sources stated the sea-facing flats were locked for the past five years after Nirav Modi fled the country. Converting the three into guesthouses would require huge expenses and monthly maintenance costs and make these properties more expensive than a five-star hotel stay, they said. The sources said no government official will take a personal interest in the properties for refurbishing and maintenance while ensuring household items, utensils and paintings are safe.
The ED officials discussed that since they are using late drug smuggler Iqbal Mirchi’s confiscated premises at the nearby Ceejay House building in Worli for the agency’s zone 2 office, they can use Nirav Modi’s flats as a guesthouse. But there is a hurdle in shifting the items lying inside, all the household utensils and paintings in the flats are expensive. Officials are unaware about the worth of these items and any damage may lead to a controversy.
The ED officials discussed the issue with officials in Delhi to find a way out as they fear more delay will lead to deterioration of the items’ value. But no clear option has emerged, sources said.
Nirav Modi fled the country in early 2018 after CBI and ED booked him in Punjab National Bank loan fraud case and he was declared a fugitive economic offender by court in India. In March 2019, Nirav Modi was arrested in the UK and is facing legal proceedings for extradition to India.
The ED had attached total immovable and moveable assets worth Rs 4,400 crore of Nirav Modi and his kin during the probe. The ED had handed over most of these to PNB in 2021 for auction. Most of these properties were mortgaged with the bank by Nirav Modi while seeking loan facilities. Some of the properties, including the flats in Samudra Mahal, which were not mortgaged remained with the ED and after completing the legal proceedings of confiscation they became government assets. Last year, ED initiated the process to auction his flats but decided to delay the process as his son approached a court claiming his ownership over it and PNB also requested ED to hand over these flats to them.
Last year, a leading auction house, on behalf of the ED, auctioned luxury items owned by him, including watches that fetched Rs 2.7 crore, a Desmond Lazaro’s untitled artwork for Rs 22.38 lakh, and two handbags for Rs 12.9 lakh and Rs 11.1 lakh.
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