Quick Summary
Punjab National Bank Ltd. (PNB)has informed the Ministry of Corporate Affairs (MCA) which spearheaded the corporate governance litigation in a foreign jurisdictional Court, that it has received $ 3.25 million (equivalent of Rs. 24.33 crore) as the first tranche of recoveries. Upon liquidation of the debtors assets by the US Chapter 11 Trustee, a sum of $ 11.04 million (equivalent of Rs. 82.66 crore) is available for distribution to unsecured creditors including PNB. Further recovery therefrom is
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FAQ :
The Ministry of Corporate Affairs has recovered an initial tranche of $3.25 million (equivalent of Rs. 24.33 crore) from the USA in the Nirav Modi case. A total of $11.04 million (equivalent of Rs. 82.66 crore) is available for distribution to unsecured creditors.
The Ministry of Corporate Affairs (MCA) spearheaded the corporate governance litigation in a foreign jurisdictional court, leading to this recovery.
Punjab National Bank (PNB) is a key creditor and has informed the Ministry of Corporate Affairs about the recovery.
Three companies promoted by Nirav Modi – M/s. Firestar Diamond, Inc., M/s. A. Jaffee, Inc., and M/s. Fantasy, Inc. – filed for Chapter 11 Bankruptcy Protection in the Southern District of New York, USA.
The US Bankruptcy Court of Southern District of New York recognized PNB's claims in the proceeds of the sale of debtor companies' assets and authorised PNB to issue subpoenas for the examination of Mr. Nirav Modi and others.
The Examiner's report explained the modus operandi of the fraud and how US-based employees of the debtor companies participated. It highlighted the use of seemingly independent companies, controlled by Nirav Modi, for 'round-tripping' of diamonds.
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