Mumbai: Nirav Modi's sister’s plea for ED to intervene in US bankruptcy proceedings rejected

A special court under the Fugitive Economic Offenders Act (FEO) has rejected fugitive diamantaire Nirav Modi’s sister Purvi Modi’s plea that the Enforcement Directorate (ED) be directed to intervene in proceedings before a United States bankruptcy court and seek injunction on attachment of her properties.

Along with her brother, Purvi is also facing bankruptcy proceedings, thus affecting her properties. The FEO law was enacted to enable confiscation of an FEO’s assets in India and abroad. The special court had declared Nirav Modi an FEO in Dec 2019. Subsequently, it had ordered confiscation of his assets.

The court said in an order on Monday that under the FEO Act, there is no provision under which relief in that respect can be granted. Purvi had told the court through her advocates by a plea last year that the bankruptcy proceedings before the Southern District of New York bankruptcy court overlap with the present and other proceedings in India relating to her.

She said the PNB, being a creditor, is pursuing multiple proceedings for the same assets which is oppressive when she has become an approver or prosecution witness against her brother. She pointed out that she had given her ‘no objection’ to dealing with Nirav’s assets in the US as the court sees fit.

The PNB had opposed her plea and pointed out that she had become a prosecution witness against the diamantaire in the money laundering case of the ED and not the present case under the FEO Act. The ED had also opposed her plea and said that her properties had already been attached as per provisions of the FEO law and that there were no provisions for the court to direct it to intervene as sought.