Published: Fri, March 02, 2018
Sport | By Floyd Cook

PNB Fraud : Nirav Modi's company files for bankruptcy in USA

PNB Fraud : Nirav Modi's company files for bankruptcy in USA

The assets of the Gitanjali Group in the 126-billion Punjab National Fraud Case seized included -fifteen flats, 17 office premises in Mumbai, Hyderabad Gems SEZ in Andhra Pradesh, Shopping Mall in Kolkata, farmhouse in Alibaug and 231 acres of land in Maharashtra and Tamil Nadu.

Stung by the Modi and Choksi fraud, banks have raised their guard while lending to jewellers.

Enforcement Directorate has attached 42 properties worth over 1,200 crore rupees belonging to Gitanjali Gems and its promoter Mehul Choksi in connection with PNB scam.

It has also told secured lenders it was in discussions with lenders for debtor-in-possession financing as it weighed options.

Indian investigators have also arrested 13 people till date, including top bank officials in the case, though they have not yet charged Modi for the crime.

Indian authorities have seized 10,000 luxury watches and nine luxury cars on February 24, apart from freezing his personal shares and mutual funds.

The company is a wholly owned subsidiary of Firestar Group, which in turn is wholly owned by Synergies Corp.

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However, the company filed for bankruptcy at a NY court Wednesday.

Enforcement Directorate issued a provisional order for attachment of the properties in PNB case under the Prevention of Money Laundering Act.

On Thursday the ministry said the public sector banks would consolidate 35 overseas operations, with another 69 being considered for consolidation.

Asked if the department is providing any assistance to the Indian government in tracing Modi, the spokesperson said, "We refer you to the Department of Justice for questions on legal assistance to the Indian authorities in relation to their investigation of Mr. Modi".

Firestar Diamond Inc, the flagship company of fugitive jeweller Nirav Modi who pulled of India's biggest-ever bank scam, has filed for bankruptcy in the United States as defrauded Punjab National Bank saw its loan losses mounting to Rs12,636 crore.

He added, "Sixty-nine operations identified for further examination".

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