Washington DC: In a major blow to Nirav Modi, a bankruptcy court in the US has rejected a petition of the fugitive diamond merchant and two of his associates, seeking dismissal of fraud allegations against them by the trustee of three companies they previously owned indirectly.
The allegations were made in a New York court by Richard Levin, the court appointed trustee of three US corporations--Firestar Diamond, Fantasy Inc and A Jaffe--indirectly owned by 50-year-old Modi previously.
Levin had also sought a minimum compensation of USD 15 million for the harm suffered by the debtors of Nirav Modi and his associates Mihir Bhansali and Ajay Gandhi.
Southern District of New York Bankruptcy Court Judge Sean H Lane issued the order last Friday, in a major blow to the Indian fugitive and his accomplices.
Nirav Modi, who is currently lodged in a jail in the UK, is challenging India's attempts to extradite him to face charges of fraud and money laundering in the Punjab National Bank (PNB) scam case.