Nirav Modi is wanted in the ₹13,570 crore Punjab National Bank (PNB) scam, he left the country in early 2018 ahead of the scam becoming public. He was declared a fugitive economic offender under the new law on 5 December 2019.
The court had ruled 'Nirav Modi had left the country under the suspicious circumstances in order to dodge the severe consequences of the act'.
He is the second business men to be declared a fugitive economic offender after Vijay Mallya. Both these business men are in United Kingdom and fighting extradition to India. Nirav Modi is currently lodged in a UK jail after being arrested in London in March, 2019. Mallya's options to avoid extraction have almost run out as he was refused leave to appeal further to the UK Supreme Court in May this year.
Under the new law a fugitive economic offender is a person against whom an arrest warrant has been issued for his or her involvement in economic offences involving at least Rs. 100 crore or more and has left India to avoid prosecution. To deter accused from fleeing the country to avoid prosecution courts can order confiscation of attached properties in India or abroad.
"These confiscated properties are in the form of four flats at the iconic building Samudra Mahal in Worli Mumbai, one Seaside Farm House and land in Alibaug, Wind Mill in Jaisalmer, flat in London and Residential Flats in UAE, shares and bank deposits," said ED.
ED through the December order by special prevention of money laundering (PMLA) court had got authorisation to attach and confiscate ₹1396 crore worth of properties. But bulk of these properties were mortgaged to PNB led consortium.