UK court clears way for sale of Nirav Modi’s luxury London apartment

A luxury apartment held in trust in London used by Nirav Modi can be sold for no less than 5.25 million pounds, following a ruling by London’s High Court on Wednesday.

Judge James Brightwell, who presided over the hearing, accepted representations from the Enforcement Directorate (ED) to seize the proceeds from the sale of 103 diamonds, while the 52-year-old fugitive diamond businessman from Thamesside Prison in south-east London listened remotely. Marathon Homes will be held in a secure account after all of the trust’s “emergency debts” have been paid.

The case involves Trident Trust Company (Singapore) Pte Limited as the plaintiff seeking to sell its apartment assets in the Marylebone area of ​​central London, with the ED arguing that the trust assets represented the proceeds of a massive fraud by the Punjab National Bank (PNB), Nigeria Love is facing extradition proceedings.

“I am satisfied that it was a reasonable decision to allow the sale of the property for £5.25 million or more,” Master Brightwell concluded.

He noted that ED had other objections in the case relating to the creation of the trust itself, but that these objections were not raised at this stage of the case.

Barrister Harish Salve, appearing for ED, told the court that their in-principle agreement to the sale was based on protecting the interests of the ultimate beneficiary, likely to be the Indian Ministry of Finance, and to avoid a “fire sale” of the asset. assets.

The judge noted that the case was “highly unusual” and involved a trust created in December 2017 in the name of Nirav Modi’s sister Purvi Modi and her family as beneficiaries.

Purvi Modi and her adult children did not participate in the proceedings, as arranged by the Indian authorities.

Nirav Modi, one of the defendants in the case, claimed that he was the “real settler” of the trust and should be considered a beneficiary.

He also claimed he gave or loaned £625,000 to the trust to facilitate his purchase of 103 Marathon House, which also entitled him to the proceeds of the sale.

Nirav Modi, dressed casually in a T-shirt and sweater, was following Wednesday’s proceedings from a room in the jail and chimed in to point to an article in the Financial Times about another money laundering case being investigated by the ED.

It was subsequently discovered during the course of court proceedings that the current tenant of 103 Marathon House and one of the main potential buyers (who was willing to buy the house for £5.25 million) was an Indian entrepreneur and the main defendant in the case.

Nirav was concerned that any funds received from such sales could be frozen by ED at a future date, leading the court to insert a warning in the court order that the proposed purchaser should be given due consideration.

In 2022, Nirav lost a Supreme Court case against extradition to India in connection with the $2 billion PNB loan scam. But his case is now said to be “statutory statute of limitations”, suggesting further proceedings are pending.

In the meantime, he has been virtually in prison attending relevant hearings, including outstanding legal fees or fines totaling £150,247, arising from failed extradition appeal proceedings.

In early March, another summary judgment from the High Court ordered Firestar Diamond FZE, a Dubai-based company linked to Nirav, to repay more than $8 million in loans owed to Indian banks.

Nirav Modi was arrested on March 19, 2019 on an extradition warrant issued by the Central Bureau of Investigation (CBI) and the Education Department against the businessman.

India has filed three sets of criminal proceedings against the diamantaire: the CBI fraud case involving PNB, which resulted in losses of more than 700 million pounds; the ED case involving alleged laundering of fraudulent proceeds; £700m of damage. Criminal proceedings involving alleged interference with evidence and witnesses in CBI proceedings.

Priti Patel, the then British Home Secretary, ordered Nirav’s extradition based on an April 2021 ruling by Judge Sam Goozee at Westminster Magistrates’ Court.