Mumbai (Maharashtra): The Bombay High Court has pulled up Punjab National Bank (PNB) for failing to take any steps to recover the huge amount of unpaid loans given to fugitive diamantaire Nirav Modi.
"Huge amount of money involved, and no steps taken by the bank. After all, this is public money. When a common man has to take a loan then,” observed a division bench of Justices Revati Mohite Dere and Gauri Godse on Tuesday. The High Court was hearing pleas filed by the Enforcement Directorate (ED) and the PNB raising cross-claims over attached properties worth over Rs 500 crores belonging to Nirav Modi.
The investigation agency challenged an order of a special court, which permitted the release of nine attached properties worth Rs 424 crore to the bank in the loan fraud case. While ED claimed it ought to have the right over the property, the PNB said they were entitled to custody since they were the creditors.
The Punjab National Bank's counsel stated that the lender was not aware of the transactions in question or that the loans were unauthorised. The High Court has given two weeks to both parties to file their replies. It has posted the matter for further hearing in three weeks.
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