Tax authorities are hoping for a windfall with the auction today of rare oil paintings that were once part of fugitive billionaire jeweller Nirav Modi’s collection and have been seized by the government.
Auctioneers say the sale is the first of its kind in a country where tax authorities have usually auctioned property, gold and luxury items, but not art.
After a court order allowing the auction to take place, tax authorities, who are pursuing Modi over the country’s largest bank fraud, appointed professional auction house Saffronart.
The sale in Mumbai of some 68 works is expected to fetch anywhere between Rs300mn and Rs500mn ($4.4mn-$7.3mn).
“Until a few years ago, the tax authorities really didn’t know the value of art,” said Farah Siddiqui, an art adviser who is advising clients eyeing Modi’s collection.
The 48-year-old Modi, whose diamonds have sparkled on Hollywood stars, is one of the prime accused in a $2bn loan fraud at state-run Punjab National Bank.
Modi denies the charges and believes they are politically motivated.
The auction comes just weeks before a national election and as Prime Minister Narendra Modi faces pressure to bring back Nirav Modi, who fled the country last year and has been residing in the United Kingdom.
He was arrested last week by British authorities and remanded in custody after he appeared before a London court.
India asked Britain last August to extradite Modi.
The auction includes works by Raja Ravi Varma, a 19th century painter considered among India’s finest, and V S Gaitonde, a modern artist known for his abstract and often monochromatic paintings.
“We believe that the collection’s intrinsic value will garner a positive response from collectors,” said Saffronart Chief Executive Dinesh Vazirani.
India Law Alliance, a law firm representing the company controlled by Modi that owns the artwork, said it was challenging the court order that allowed the auction. The case will be heard by the Bombay High Court tomorrow, a lawyer at the firm told Reuters.
Vijay Aggarwal, a lawyer for Modi, declined to comment.
A staff member walks past Francis Newton Souza’s u201cCityscapeu201d (left) and u201cPortrait of Suruchi Chandu201d during a media preview at the Saffron Art Gallery in Mumbai yesterday, ahead of the Spring Live Auction being conducted by the gallery on behalf of the Income Tax Department. The tax authorities organised the auction to sell artwork that belonged to fugitive billionaire and jeweller Nirav Modi, who fled to London last year, after being involved in a massive bank fraud that rocked India’s corporate community.