A special court here has allowed the release of properties worth Rs 66.33 crore, owned by fugitive diamantaire Nirav Modi and his sister Purvi Modi and attached by the Enforcement Directorate (ED) in connection with the multi-crore PNB fraud case.

The court allowed the application filed by the Punjab National Bank (PNB) seeking to release the properties so that they can be sold or auctioned to recover the dues.

The central agency had attached these properties in connection with a money laundering probe against Modi and others in the PNB fraud case.

Special judge A V Gujarathi, assigned to hear cases pertaining to the Prevention of Money Laundering Act (PMLA), in its order passed on June 17, however directed the bank to furnish an undertaking that the amount (at which the property would be sold) would be recovered if required in the future.

The properties include jewellery, coins, watches and cash that were found at Modi’s house in Samudra Mahal in Mumbai’s Worli area worth Rs 40.83 crore, a flat valued at Rs 19.50 crore in Purvi’s name in the metropolis, and other unvalued movable properties recovered from Modi’s Worli house.

The consortium of Banks, led by the PNB, claimed that they have suffered a cumulative loss of more than Rs 8,526 crore due to the fraud committed by Nirav Modi and his associates.

It is more than the total value of the properties (approximately Rs 2,324.97 crore), which have been attached by the ED under the provisions of the PMLA, 2002.

The ED said it has no objection if the properties were exempted from attachment, subject to certain conditions.

After recording their submissions, the court noted that Modi still remains absconding and allowed the bank’s plea for the release of the properties.

Modi and his uncle Mehul Choksi are the prime accused in the Rs 13,500-crore PNB scam.

While Choksi is fighting for his bail in a Belgium court, Modi has been languishing in a London jail since 2019.