UK HC rejected Nirav Modi's bail keeping in mind sheer quantum of fraud: ED

New Delhi, May 16 (PTI) The Enforcement Directorate on Friday said the High Court in UK again rejected bail to fugitive diamond trader Nirav Modi keeping in view the "sheer quantum of fraud" involved in this case and added that extradition proceedings against him were at a "final" stage.

Nirav Modi was arrested by the Scotland Yard Police on March 19, 2019 and is currently lodged in jail in that country.

"UK High Court has once again refused bail to Nirav Modi, the mastermind of USD 1 billion fraud against PNB, hearing his 4th bail application on Thursday (15.05.2025)," the federal agency said in a statement.

After thorough deliberation of arguments of the defence (Nirav Modi) with counter arguments of prosecution (Indian government), written submissions made by the ED, which highlighted the money laundering aspects by using shell companies to launder the proceeds to jurisdictions abroad including UK, and keeping in view the sheer quantum of fraud, the UK High Court rejecting the application, denied bail to Nirav Modi, it said.

The ED said a part of the defrauded amount that was attached and seized by it has been restituted (restored) to the victim banks.

The ED said Nirav Modi had made attempts to obtain bail from UK Westminster Magistrate Court on six occasions and three times from the UK High Court.

However, bail to Nirav Modi was denied on each such occasion from the respective UK courts, it said.

The agency said the diamantaire filed his fourth bail plea before the UK High Court of Justice King's bench on March 21 citing significant lapse of time and on grounds of health as he challenged the order of UK District Judge Zani dated May 7, 2024 in which he was denied bail.

As part of proceedings in this application, the bail plea was comprehensively heard, wherein the government of India (through CPS Counsel team and officials of ED other agencies) "strongly" opposed granting of bail to Nirav Modi, leading to a favourable outcome for India, it said.

The money laundering case of the ED was booked on February 14, 2018 on the basis of a CBI FIR that alleged a fraud of Rs 6,498.20 crore (USD 1.015 billion) at the Brady House branch of the Punjab National Bank (PNB).

The agency had attached assets, both in India and abroad, worth Rs 2,626.62 crore in this case till now and has filed two chargesheets naming Modi and 35 other accused.

The ED also has confiscated movable and immovable assets of Nirav Modi and his associates worth Rs 692.90 crore under the Fugitive Economic Offenders Act of 2018 after a Mumbai court declared him a Fugitive Economic Offender.

Out of the total attached/seized properties, assets to the tune of Rs 1,052.42 crore have been successfully restored to the victim banks (PNB consortium banks) till now, it said.

Nirav's uncle Mehul Choksi, a co-accused in the PNB fraud case, was arrested by the authorities in Belgium where he had gone for treatment, it said.

The duo has been accused of siphoning off over Rs 13,000 crore from the PNB using fraudulent letters of undertaking and foreign letters of credit. PTI NES ZMN

Source: PTI