A special CBI court in Mumbai has granted the Enforcement Directorate permission to auction two vehicles seized from fugitive diamond merchant Nirav Modi, marking another step in the long-running legal proceedings surrounding the multicrore PNB fraud case. The court stressed that the seized cars — a Mercedes-Benz GLE250 and a Skoda Superb Elegance — were deteriorating in value as they remained unused, and that selling them now would help preserve their financial worth for future recovery.
In its detailed order, the court observed that the vehicles had been lying idle since their attachment under the Fugitive Economic Offenders Act (FEOA) and the Prevention of Money Laundering Act (PMLA). Special Judge AV Gujarathi noted that the trial involving Modi and several co-accused shows no immediate prospect of beginning, mainly because many of the accused remain absconding. This prolonged uncertainty, the court said, made it impractical to store the vehicles indefinitely.
The ED had sought permission to auction three vehicles in total — a Skoda Superb Elegance valued at ₹7.5 lakh, a Mercedes-Benz GLE250 valued at ₹39 lakh, and a Mercedes-Benz 4Matic FL 350 CDI valued at ₹54 lakh. Together, the agency said, the cars were worth over ₹1 crore at the time of attachment. However, the court permitted the auction of only two, allowing the sale of the GLE250 and the Skoda Superb. The order did not elaborate on why the third vehicle was withheld from auction, but it underlined the broader concern of asset depreciation.
During the hearing, Special Public Prosecutor Arvind Aghav emphasised that these high-value cars lose market value rapidly when left idle for extended periods. He explained that maintaining them in sealed storage or custody facilities was both costly and impractical, as the upkeep expenses risked exceeding the eventual sale proceeds. The court concurred with this reasoning, stating that allowing the cars to sit unused would amount to a financial loss to the state.
Judge Gujarathi also highlighted that, since Nirav Modi has already been declared a fugitive economic offender, the law does not require the court to seek his objections or comments before approving the sale. This classification, the judge added, empowers authorities to dispose of attached assets to prevent their value from diminishing while the case drags on.
The court directed that once the vehicles are auctioned, all proceeds must be deposited in a fixed deposit account with a nationalised bank. This would ensure that the funds remain safeguarded and grow modestly through interest accrual until the final resolution of the case. The judge reiterated that such measures are essential to protect the monetary value of seized assets, especially in cases where legal proceedings are expected to extend over several years.
The ED’s broader investigation involves allegations of large-scale fraud, money laundering and diversion of funds linked to the Punjab National Bank scam. Modi, who fled India in 2018 and is currently fighting extradition in the UK, faces multiple criminal cases in Indian courts. The asset auctions form a key part of the ongoing attempts to recover the losses incurred in the scam, which is estimated to exceed ₹13,000 crore.
With the court’s recent order, the ED is now set to proceed with the auction process, aiming to prevent further depreciation of assets tied to one of India’s most high-profile financial crimes.
