Two banks have reportedly told a special PMLA court that they are unable to release money lying in the accounts of a firm owned by fugitive diamond trader Nirav Modi. The lenders said the money is lying in the account of Nirav Modi's Firestar International Limited. They were responding to an affidavit filed by the official liquidator who claimed that three banks were yet to release ₹37 crore from the firm’s accounts towards the recovery of debts. The liquidator was appointed by National Company Law Tribunal.
As per the affidavit, which was filed last October, the company had a deposit of ₹2.67 crore with Kotak Mahindra Bank, ₹17.98 crore with Union Bank of India, and ₹16.32 crore with Bank of Maharashtra. The court had on August 13, 2021, directed the banks to release the money in favour of the liquidator. However, when the official reached out to the banks, they expressed their inability to do so, the affidavit said. The court had on August 13, 2021, directed the banks to release the money in favour of the liquidator. However, when the official reached out to the banks, they expressed their inability to do so, the affidavit said. On Thursday, Kotak Mahindra Bank said the firm’s account was first attached by income tax department and a day later by the Enforcement Directorate, which is probing money laundering charges against Modi and his Firestar group firms.It further told the court that I-T department had issued a notice on February 21, 2019, asking them to clear the dues Firestar International Limited owed the department.