A high court ruling in London has determined that a luxury apartment, previously utilized by Nirav Modi and held in trust, can be sold for no less than GBP 5.25 million. Presided over by Master James Brightwell, the decision was reached during a hearing attended remotely by the fugitive diamond merchant, currently situated in Thameside prison in south-east London.
Accepting representations from the Enforcement Directorate (ED), the judge endorsed the sale of 103 Marathon House, while ensuring that the proceeds from the transaction would be secured in an account after addressing all pertinent liabilities of the trust.
Trident Trust Company (Singapore) Pte Limited, as the claimant seeking to sell the property in the Marylebone area of central London, encountered opposition from the ED, which contended that the trust's assets stem from a substantial fraud perpetrated on the Punjab National Bank (PNB), a matter for which Nirav is undergoing extradition proceedings.
Master Brightwell deemed the decision to sell the property for GBP 5.25 million or more reasonable. He acknowledged the ED's reservations regarding the trust's establishment but noted they were not pursued at this juncture.
Representing the ED, Barrister Harish Salve informed the court of their agreement to the sale, provided certain safeguards were in place to protect the interests of potential beneficiaries, potentially including the Indian exchequer, and to prevent a rushed disposal of the asset.
The case unfolded as a unique one, involving a trust established in December 2017 in the name of Nirav Modi's sister, Purvi Modi, and their family as beneficiaries. Notably, Purvi Modi and her adult children refrained from participating in the proceedings, leaving Nirav Modi to assert his status as the "true settler" of the trust, claiming entitlement to proceeds from the sale.
During the proceedings, Nirav, clad in casual attire, raised concerns from his prison quarters regarding a related money laundering case mentioned in 'The Financial Times'. It came to light that the current tenant of 103 Marathon House, and a prospective buyer, had ties to an Indian-origin entrepreneur under investigation, prompting caution from the court regarding potential future asset freezing by the ED.
Despite losing his extradition battle in the Supreme Court in 2022, Nirav Modi's legal entanglements persist, including pending legal costs and fines amounting to GBP 150,247.00. Moreover, a recent High Court judgment ordered a Dubai-based company associated with Nirav to repay a loan exceeding USD 8 million owed to the Bank of India.
Nirav Modi's arrest in 2019 on an extradition warrant, stemming from charges laid by the Central Bureau of Investigation (CBI) and the ED, initiated a series of legal proceedings against the businessman in India. These include allegations of fraud on the PNB, money laundering, and interference with evidence and witnesses.
While former UK Home Secretary Priti Patel sanctioned Nirav's extradition based on a ruling from Westminster Magistrates' Court, legal complications and ongoing litigation underscore the complexity of his case.
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