State-owned Punjab National Bank (PNB) has filed an application for the release of Nirav Modi's properties worth Rs 71 crore, attached by the Enforcement Directorate (ED) in the bank fraud case.

The application, moved before a special court on Wednesday, states that the  claimants of the properties of the fugitive diamond merchant are public sector banks and the amount sought to be recovered is public money.

The PNB is a part of a consortium of banks which had lent money to Modi.

The state-run lender had incurred a loss of Rs 8,526.20 crore in the fraud and so far only Rs 1,066.41 crore of properties have been released from attachment under the PMLA. This, according to PNB, is “grossly insufficient” to meet its losses. 

The bank has furnished a list of 18 movable and immovable properties totaling over Rs 71.16 crore, which it has sought to be released from the attachment of the ED so that it could be used for recovery of the outstanding debts owed to the bank.

As per the application, some of the assets attached by the ED are amenable to market fluctuations and any delay in liquidating them may reduce their value.

Hence, there is an immediate need for the speedy disposal of the assets to realise their best value, it added.

Some of the properties are valuables owned by Firetstar Diamond Ltd, jewellery worth Rs 35.52 lakh, and eight cars, including a Bentley owned by Nirav Modi.

The court asked the prosecution to file its reply by 25 July.