A Special Court constituted under the Prevention of Money Laundering Act ( PMLA ) last day allowed the Income Tax Department (I-T) to auction the paintings and cars of Nirav Modi, the fugitive businessman whom the Scotland Yard arrested on Tuesday afternoon (local time) in London.
“A special PMLA court has allowed Income Tax Department’s application to auction some paintings from the collection of Nirav Modi. All those paintings have been seized by the Enforcement Directorate,” the Enforcement Department tweeted last day.
The Income Tax Department had filed an application to seek permission from the special court as it had already published the auction notice. Modi is also a defaulter for the Income Tax Dept. “Through the auction, Income Tax Department wishes to make some recovery,” they said.
Sources said the court has allowed I-T to go ahead with the auction by the end of this month, but “all the proceeds of this auction are to be deposited in the special PMLA court.” It is said 173 paintings and 11 cars of Modi will be auctioned. The procedure for the sale of the vehicles should be followed as per rules prescribed and the entire procedure after the sale be submitted to the court.
The proceeds of the sale should be deposited in the State Bank of India or any Nationalized Bank in fixed deposit. The copy of the Deposit Certificate/Receipt should be submitted to the Court.
