Auction of Nirav Modi’s jewellery fetches `25 cr
Around 1,200 pieces of jewellery consisting of diamond and other precious stones studded neck pieces, earrings, rings , bangles and bracelets were put up for auction in 2nd lot in nine blocks
image for illustrative purpose
The auction of the second lot of jewellery of Diamantiare Nirav Modi's Firestar Diamond International which is undergoing liquidation was successfully conducted on August 16, by Santanu T Ray the liquidator appointed by NCLT Mumbai Bench.
Talking to Bizz Buzz, Ray said: “Around 1200 pieces of jewellery consisting of diamond and other precious stones studded neck pieces, earrings, rings , bangles and bracelets were put up for auction in second lot in nine blocks. There were more than 25 eligible bidders of whom 10 bidders participated. Against a cumulative reserve price of Rs 24.74 crore total bids received was Rs 25.016 crore. As is the practice of Ray all the Jewellery items are independently certified by Gemmological Institute of India (GII) and subsequently valued by two registered valuers.”
The bidders can do their due diligence virtually from the data room and no physical inspection is need, he said.
According to Ray, “There are many more such auctions coming up as the Enforcement Directorate (ED) is gradually releasing the assets of companies of Nirav Modi Group under liquidation. Almost all the assets were attached under the PMLA Act.”
The total claim received is above Rs11,000 crore. So far, ED had released only a part of the assets of the company to the liquidator. The ED is also in the process of releasing Nirav Modi's other attached assets to the DRT appointed receivers.
As per the liquidator, the inventory is expected to fetch a higher price as there has been a good increase in the price of gold and diamonds since 2018 when the material were seized. So far, almost all the inventory consists of natural diamond studded jewellery and also natural loose diamonds and gemstones, hence the value realization is better.
On the other hand the real estate assets is fetching a lower value as the market is sluggish and despite the fact the liquidation buyer is supposed to get the asset clean from the past encumbrances of the company, still they face a lot of hurdles from various authorities like Electricity Distribution Companies/ boards, Municipal/ Gram Panchayat authorities, housing and commercial cooperative societies which create a lot of hurdles and delays in transferring the services, membership in favour of the buyer, trying to extra judicially make them pay for the past dues of the companies.
