Nirav Modi, Punjab National Bank scandal, Rolls-Royce and the rise of a Mumbai auction house
- Saffronart to help auction assets seized from alleged perpetrators in Punjab National Bank scandal
- The items include artworks, Hermes handbags, a Rolls-Royce and limited-edition watches
The Punjab National Bank scandal is likely to cost India’s second largest state-owned lender about US$2 billion. Sale of assets seized from the alleged perpetrators including diamond designer Nirav Modi, starting this month, suggests a long road to recovery.
Through the Enforcement Directorate, the agency responsible for fighting economic crime in India, the government has engaged Mumbai-based Saffronart to auction a litany of luxury goods to recoup its losses. The list includes prized artworks by Indian and Chinese painters, Hermes’ Birkin and Kelly handbags and a Jaeger-LeCoultre watch in platinum. A Rolls-Royce Ghost and a Porsche Panamera S are also going under the hammer.
An on-site live auction is set for February 27 and an online bidding on March 3 and 4, with both events expected to raise US$5.7 million and US$7.1 million, the auction house estimated in an email to the Post on Wednesday.
“These works are of significant interest to strong collectors and connoisseurs of Indian and Chinese art,” said Dinesh Vazirani, CEO and co-founder of Saffronart, which has conducted 250 auctions over its 20-year history. “In terms of interest, the bags and cars have a much wider appeal.”
Modi fled the country in early 2018, days before the scandal broke out revealing the issuance of letters of understanding for trade that bypassed Punjab National Bank’s internal controls. The Enforcement Directorate has since attached at least US$1 billion worth of assets belonging to Modi and other people charged in the case.