Centre, PNB step up heat on Nirav firms

New Delhi, April 22: The government has intervened in the bankruptcy proceedings of Nirav Modi firms in the US to protect the interests of PNB, Union minister P.P. Chaudhary said, amid multi-pronged efforts to deal with the nearly `13,000 crore scam.

Diamond merchants Nirav Modi and his uncle Mehul Choksi are alleged to have perpetrated the country’s biggest banking sector scam at PNB, mainly by way of issuance of fraudulent Letters of Undertaking.

Against the backdrop of multi-agency probe into the case, Mr Chaudhary said that some Nirav Modi firms filing for bankruptcy in the US would jeopardise the interests of PNB.

The MoS for corporate affairs noted that committing of fraud and violation of Indian laws by these firms necessitates booking of the accused in India. “Since the investigation against Nirav Modi led firms ie. Firestar Diamond and other firms is still going on in India for committing fraud against the PNB, the filing of bankruptcy by these firms in the US would jeopardise the interest of the Indian bank,” he told PTI.

Mr Chaudhary, who is the Minister of State for Law and Justice, said, “we have intervened in the bankruptcy proceedings in the US to safeguard our interests”.

PNB, after moving the insolvency authority in the US, has raised heat by approaching Hong Kong Court against billionaire jeweller Nirav Modi.

The bank plans to approach other jurisdictions where Nirav Modi and his associates have assets and properties as part of recovery process, a senior PNB official said.

Hong Kong authorities have been approached and recovery writ has been filed against companies of Nirav Modi, the official said without disclosing other details.

It is to noted that PNB recently hired lawyers to represent itself in the bankruptcy proceedings of the Firestar Diamond, a group company of billionaire diamantaire.

The US Trustee Program oversees the administration of bankruptcy cases in the United States. — PTI