New Delhi | Mumbai: In a significant development in the case involving fugitive economic offender Nirav Modi, a Mumbai special court has permitted the Enforcement Directorate (ED) to auction three high-end vehicles belonging to the diamantaire. The agency had sought approval to dispose of two Mercedes-Benz cars and one Skoda, citing continuous depreciation, prolonged idling and escalating maintenance costs that now exceed the market value of the vehicles.
The three vehicles—collectively valued at over ₹1 crore—were attached as part of the investigation into the ₹12,600-crore Punjab National Bank (PNB) fraud, in which Modi, his uncle Mehul Choksi and several PNB officials were accused of orchestrating a massive conspiracy to defraud the bank.
Accused absconding, no likelihood of trial commencing soon
In its plea, the ED informed the court that the cars have been lying idle since their attachment in 2019. Both Nirav Modi and Mehul Choksi continue to remain abroad, and the prospects of the trial beginning in the near future are “extremely remote”, the agency noted. As a result, the vehicles are deteriorating rapidly and losing value with each passing year. Special Judge A.V. Gujarathi, while allowing the application, observed:
“Since the vehicles have been lying unused for a long time, depreciation in their value is inevitable. The recurring cost of upkeep is also increasing. Most of the accused are absconding, and therefore the commencement of trial is uncertain. Considering these aspects, auctioning the vehicles is necessary to preserve their value.”
The court clarified that the decision is consistent with the Fugitive Economic Offenders Act (FEOA), 2018, under which the vehicles were attached and later confiscated, and falls within the framework of prudent asset management.
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ED cites depreciation, storage damage in detailed submission
In its October application, the ED warned that the longer the vehicles remain unused, the greater the damage they may incur—making their restoration to operational condition increasingly difficult. The agency reported that insurance, maintenance and secure storage costs run into several lakhs annually, creating an imbalance between upkeep expenses and the vehicles’ reduced valuation.
According to ED records, the total assessed value of the vehicles at the time of attachment was ₹1,00,50,000 (Rs 10,050,000). However, prolonged non-use has led to further depreciation, the agency noted.
Auction to follow prescribed rules; proceeds to be deposited with SBI
The court directed that the auction process must strictly adhere to established norms and transparency requirements. It further ordered that the entire auction proceeds be deposited as a fixed deposit with State Bank of India (SBI) or any other nationalised bank.
The amount will remain secured until the final adjudication of the case.
ED has confiscated assets worth ₹692.90 crore; ₹1,000 crore restored to PNB
Under proceedings initiated against Nirav Modi pursuant to the FEOA, the ED has so far confiscated movable and immovable properties worth ₹692.90 crore. In addition, assets worth ₹1,000 crore have been restored to Punjab National Bank, offering partial relief to the lender that suffered the massive fraud.
