MUMBAi: With only Rs 236 said to be left in one of fugitive businessman Nirav Modi’s bank accounts Firestar Diamond International Pvt Ltd (FIDPL) after Bank Kotak Mahindra converted Rs 2.46 crore to State Bank of India for income taxes, and two others, Union Bank of India And Maharashtra Bank, transferring only a portion of the total amount due, the liquidator appointed to the company again goes to the special court to seek release of the funds. In August 2021, as part of proceedings under the Fugitive Economic Crimes Act, the court directed the amount to be paid to the plaintiff, Punjab National Bankthrough the designated liquidator in connection with the FIDPL.
In response to the liquidator’s plea, the special court last week directed Union Bank of India and Maharashtra Bank to comply with the previous order “in the strict sense” within three months and transfer the funds to the account. of the liquidator.
The court made it clear that Union Bank of India and Bank of Maharashtra acted arbitrarily and disobeyed the court order. “ED has also prayed for permission for this app. . . In fact, that order (from 2021) has been and is binding on all respondents and therefore it is not necessary to file this application to provide instructions to such respondent to comply, ‘ said the court. It does not give directions to Kotak Mahindra Bank.
The liquidator said it had notified Union Bank of India to transfer the funds located in the company’s account. It is alleged that the bank did not respond to the email. During the arguments, the bank further stated that it only transferred Rs 17 million to the liquidator’s account but did not transfer the balance. It was alleged that the balance was not the exclusive collateral of the bank and should have been passed on to the liquidator.
The court said that regarding Maharashtra Bank, which first appeared in 2021, the ED informed the bank to release FIDPL’s account and transfer the amount to the liquidator. “However, the bank announced that it has adjusted the amount, i.e. Rs 16.32 crore, to the loan balance or cash margin of the company and closed these accounts in 2018 because no balance left. This is nothing but complete disobedience to the ED’s orders,” the order said.
In response to the liquidator’s plea, the special court last week directed Union Bank of India and Maharashtra Bank to comply with the previous order “in the strict sense” within three months and transfer the funds to the account. of the liquidator.
The court made it clear that Union Bank of India and Bank of Maharashtra acted arbitrarily and disobeyed the court order. “ED has also prayed for permission for this app. . . In fact, that order (from 2021) has been and is binding on all respondents and therefore it is not necessary to file this application to provide instructions to such respondent to comply, ‘ said the court. It does not give directions to Kotak Mahindra Bank.
The liquidator said it had notified Union Bank of India to transfer the funds located in the company’s account. It is alleged that the bank did not respond to the email. During the arguments, the bank further stated that it only transferred Rs 17 million to the liquidator’s account but did not transfer the balance. It was alleged that the balance was not the exclusive collateral of the bank and should have been passed on to the liquidator.
The court said that regarding Maharashtra Bank, which first appeared in 2021, the ED informed the bank to release FIDPL’s account and transfer the amount to the liquidator. “However, the bank announced that it has adjusted the amount, i.e. Rs 16.32 crore, to the loan balance or cash margin of the company and closed these accounts in 2018 because no balance left. This is nothing but complete disobedience to the ED’s orders,” the order said.
