London HC okays sale of Nirav Modi family’s £5.25 million property
The high court of London on Wednesday gave permission to sell a prime property belonging to jailed diamantaire Nirav Modi’s family trust for £5.25 million (approximately ₹55 crore). The order came after the court traversed through a complex tangle of trust rules used by high net worth individuals to escape scrutiny and tax liabilities. Modi, who is lodged in Thameside prison, appeared before the court through video conferencing.
According to people familiar with the matter, the property in question was purchased in December 2017 for £6.25 million (approximately ₹60 crore) by Trident Trust Company (Singapore) whose ultimate beneficiaries were members of the Nirav Modi family. Two high-end real estate agents have been scouting for buyers and the proceeds, once realised, will go to Modi’s creditors, an official aware of the matter said.
The 4,079 square feet duplex apartment is situated close to Baker Street station and came under scanner after Nirav Modi’s downfall following the Punjab National Bank (PNB) scam. On paper, the property was shown to be owned by Purvi Modi, Nirav’s sister.
The Enforcement Directorate (ED), meanwhile, maintained that the ultimate beneficiary and control was with Modi. However, as the ED probed the exact ownership and sale of the property in the London court, Nirav Modi admitted that he purchased it.
ED, represented by Harish Salve, King’s Counsel and assisted by Chintan Chandrachud, told the court that they oppose any payments to be made to Nirav Modi upon the conclusion of the sale. Salve told the court that ED does not want the property to be put on auction and realise less money.
Hence, ED was fine with the sale of the property which would realise a fair amount and the proceeds to be given in accordance with the law. Nirav Modi owes money to the HMRC (UK tax authority) which could auction the property.
The same family trust, which owns the London property, also operated a bank account in Geneva which had $12 million, which is now frozen.
It is to be noted that Modi has been facing a magistrates’ court in the UK over non-payment of legal dues and promised that he would pay through monthly instalments.