PNB plans to stake claim in insolvency proceedings of Nirav Modi firm
26 March 2018 4:41 AM IST
New Delhi: Punjab National Bank (PNB) plans to take part in the bankruptcy proceeding of Firestar Diamond, a group company of jewellery designer Nirav Modi who has been accused of defrauding the state-run bank of nearly Rs 13,000 crore.
The bank is exploring all options for the recovery, including participating in the bankruptcy proceeding of Firestar Diamond Inc, sources said.
According to sources, the bank is in the process of hiring legal experts to take the matter forward. The legal firm would be hired soon.
Various pros and cons are being examined in order to make watertight case for the recovery, sources said, adding the bank is part of unsecured creditor category.
When contacted, PNB declined to comment on the matter.
Last month, Firestar Diamond, a company owned by Nirav Modi filed for bankruptcy in a New York court. The US Trustee Program oversees administration and litigation for enforcement of the bankruptcy law.
Modi and his uncle Mehul Choksi in connivance with certain bank officials allegedly cheated the PNB of Rs 12,968 crore through fraudulent Letters of Undertaking (LoUs).
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