PNB CLAIM ON NIRAV ASSETS

NEW YORK: A United States court on Friday issued summons to diamond merchant Nirav Modi and his aides at the heart of the multi-billion Punjab National Bank scam. Significantly, the US court, in its order, has recognised the claim of Punjab National Bank on proceeds of any asset sold by the US debtors of the Nirav Modi entities.The Indian ministry of corporate affairs had on February 26 filed a petition against bankruptcy proceedings of Nirav Modi in the US court and sought that PNB be made party to the sale of any assets of his entities. The order is an important development as it would help reveal the whereabouts of Modi and ease the extradition process, if required.

The US court has also issued summons for examination of fugitive Mihir Bhansali and Rakhi Bhansali. (Mihir was a senior official at Modi’s flagship company Firestar International while Rakhi is his wife.)

This is the first time that the MCA has intervened in a foreign case pertaining to an Indian company. Moneycontrol has a copy of the US Bankruptcy court order which has recognized that PNB will have claims to assert and these claims need to be addressed and sorted out before estate sale proceeds are distributed. The order also authorises gathering of documents from Ajay Gandhi and Kunal Patel, the senior financial officers of the Nirav Modi entities in the US.