MUMBAI: With only Rs 236 allegedly left in one of fugitive businessman Nirav Modi’s Firestar Diamond International Pvt Ltd (FIDPL) bank accounts after Kotak Mahindra Bank transferred Rs 2.46 crore to State Bank of India towards income taxes, and two more, Union Bank of India and Bank of Maharashtra, transferred only a part of the total amount due, the liquidator appointed for the company has again moved the special court asking for the release of the money. In August 2021, in the context of the proceedings under the Fugitive Economic Offenders Act, the court had ordered the amounts to be released to the applicant, Punjab National Bank, through the liquidator appointed in relation to the FIDPL.
In response to the liquidator’s request, the Special Court last week ordered Union Bank of India and Bank of Maharashtra to comply with its earlier order “in the strict sense” within three months and transfer the money to the liquidator’s account.
The court said that it was clear that Union Bank of India and Bank of Maharashtra acted arbitrarily and did not follow court orders. “ED also prayed to allow this application. . . Indeed that order (as of 2021) is and was binding on all the defendants and hence there was no need to file this application to issue instructions to the defendant to comply with the same,” the court said. It did not issue any directions for Kotak Mahindra bank.
The liquidator said that it has informed the Union Bank of India to transfer the amount present in the company’s account. It was alleged that the bank did not respond to emails. He further said during the discussions that the bank only transferred Rs 17 crore to the account of the liquidator but did not transfer the balance. It was argued that the balance amount was not the bank’s sole guarantee and should have been transferred to the liquidator.
The court stated that as regards Bank of Maharashtra, it appeared prima facie in 2021, ED had informed it to unfreeze the account of FIDPL and transfer the amount to the liquidator. “However, the bank has advised that it has adjusted the amount i.e. 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 to ED’s order,” the order said.
In response to the liquidator’s request, the Special Court last week ordered Union Bank of India and Bank of Maharashtra to comply with its earlier order “in the strict sense” within three months and transfer the money to the liquidator’s account.
The court said that it was clear that Union Bank of India and Bank of Maharashtra acted arbitrarily and did not follow court orders. “ED also prayed to allow this application. . . Indeed that order (as of 2021) is and was binding on all the defendants and hence there was no need to file this application to issue instructions to the defendant to comply with the same,” the court said. It did not issue any directions for Kotak Mahindra bank.
The liquidator said that it has informed the Union Bank of India to transfer the amount present in the company’s account. It was alleged that the bank did not respond to emails. He further said during the discussions that the bank only transferred Rs 17 crore to the account of the liquidator but did not transfer the balance. It was argued that the balance amount was not the bank’s sole guarantee and should have been transferred to the liquidator.
The court stated that as regards Bank of Maharashtra, it appeared prima facie in 2021, ED had informed it to unfreeze the account of FIDPL and transfer the amount to the liquidator. “However, the bank has advised that it has adjusted the amount i.e. 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 to ED’s order,” the order said.
