A court-appointed liquidator in India expects to recover ₹500 crore ($58.2 million) from the sale of precious metals, gemstones, and real estate belonging to diamond tycoon Nirav Modi, according to people familiar with the matter.
Modi and his uncle, Mehul Choksi, are wanted in a $1.5 billion Indian fraud case that dates back to 2018. India’s federal investigators have been pressing for their extradition.
Meanwhile, the liquidator has already recovered approximately ₹280 crore and plans to launch a new auction, including solitaire-studded finger rings that belonged to Modi, the people said, who asked not to be identified because the matter is confidential.
The liquidator has been auctioning assets as they’re released by the Directorate of Enforcement, an Indian anti-money laundering agency.
The auctioning of Modi’s possessions has shaped the way India’s government manages seized assets. After the tax office decided to auction some of Modi’s paintings in 2019, India’s fraud investigation office, for the first time, commissioned auctioneers to invite bids for assets seized from economic fugitives.
Funds raised through the auction will help pay down claims against Firestar Diamond International Pvt. and Firestar International Ltd, amounting to more than 120 billion rupees. The auction is scheduled for August 2, as announced in a public notification.
India’s bankruptcy court ordered the liquidation of both companies in 2020 and 2021. Santanu T Ray was appointed as a liquidator for the processes. He did not reply to an email from Bloomberg News seeking comment.
A separate recovery process, conducted through the debt recovery tribunal, is tapping into other assets of the Nirav Modi Group, the people said.
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