With only Rs 236 allegedly remaining in one of the bank accounts of fugitive businessman Nirav Modi's Firestar Diamond International Pvt Ltd (FIDPL) after Kotak Mahindra Bank transferred £246,000 to State Bank of India towards income tax dues, and two others, Union Bank of India and Bank of Maharashtra, transferred only part of the total amount due, the liquidator appointed for the company once again moved the special court seeking release of the money. The amounts were ordered to be released to the claimant, Punjab National Bank, through the liquidator chosen with regard to FIDPL by the court in August 2021 as part of the proceedings under the Fugitive Economic Offenders Act.
The special court ordered Union Bank of India and Bank of Maharashtra last week to comply with its earlier judgment "in strict meaning" within three months and transferred the money in the liquidator's account in response to the liquidator's request.
The court said it was clear that Union Bank of India and Bank of Maharashtra acted arbitrarily and have not followed court orders. “ED has also prayed for allowing this application. . . In fact that order (from 2021) is and was binding on all the respondents and hence there was no need to file this application for issuing directions to respondent to comply with the same,” the court said. It did not issue directions to Kotak Mahindra Bank.
The liquidator said it had informed the Union Bank of India to transfer the amount lying in the company’s account.
