After Vijay Mallya, Now PNB Scam Accused Nirav Modi Declared Fugitive Economic Offender

Nirav Modi, the prime accused in the Rs 13,000 crore Punjab National Bank (PNB) scam case has been declared a fugitive economic offender under the Fugitive Economic Offenders Act by the special Prevention of Money Laundering Act ( PMLA) court in Mumbai.?

The development came a day after the court issued a summons to Modi, his brother Neeshal Modi and a close associate Subhash Parab, directing them to remain present before it by January 15.

As per the law, once a court issues a proclamation order, the accused needs to remain present before it within the stipulated deadline, failing which it can proceed to declare the accused a proclaimed offender.

Once a person is declared a proclaimed offender, the probe agency can begin the confiscation of his properties in India.

Modi who was arrested in London earlier this year and his extradition process is pending, had argued through his lawyer that he was not absconding and that he is trying to reach an agreement with the PNB for the settlement of the loans.

Modi, along with his uncle Mehul Choksi and others are accused of defrauding the PNB in connivance with some bank officials by issuing Letters of Undertaking which they used to get loans from other banks.

Earlier, in its plea seeking to attach the property of the three accused, the central agency had said that they had left the country before the case was registered, so the warrants against them could not be executed. While Modi is in a London jail, the whereabouts of Neeshal and Parab are not known.

In April this year the ED had recovered Rs 3.28 crores from?Nirav Modi?and his uncle Mehul Choksi after a fleet of luxury cars owned by them were sold in an online auction.

Earlier in March as many as?57 artworks seized by ED were put at Saffronart Spring Live Auction?in Mumbai and it fetched Rs 54.84 Crore for the Government of India.

Modi is the second Indian to get the fugitive economic offender tag. The first was former liquor baron Vijay Mallya, who just like Modi had fled India and is now living in London. He is also facing extradition to India where he is wanted in several cases including loan default and money laundering.?

Mallya, who is accused of fraud and defaulting on bank loans to the tune of Rs 9,000 crore for his defunct airline, Kingfisher was declared a fugitive economic offender in January this year.