The global jewellery trade that’s part of the empire controlled via Nirav Modi, the billionaire accused of masterminding India’s greatest bank fraud, was once driven toward US bankruptcy coverage after Indian government started seizing and freezing property.
The company’s attorney defined that background at a Manhattan federal bankruptcy courtroom hearing on Tuesday. Nirav Modi, the manager govt officer of the mum or dad company of the jeweler Firestar Diamond Inc., is beneath investigation for an alleged $2 billion fraud in India. Firestar isn’t related to the complaints filed via government, the corporate stated remaining month. Still, the seizure of property took its toll.
“That had a dramatic and surprising impact at the operations of the USA companies,” stated Ian Winters of Klestadt Winters Jureller Southard & Stevens LLP in the hearing on behalf of Firestar Diamond.
Two retaining companies and Nirav Modi for my part are making certain an present revolving credit score facility with Israel Discount Bank, in step with a submitting. Israel Discount didn’t straight away respond to a request for comment.
Nirav Modi, a jeweler who’s dressed actresses together with Kate Winslet and Priyanka Chopra, has been accused together with Mehul Choksi of defrauding Punjab National Bank. PNB alleges that the duo and their associates worked with some rogue staff and used fake promises to procure loans from abroad.
Supply chains were disrupted for the wholesale jeweler and its affiliates after Indian government close sure factories that provided lots of the company’s merchandise, and this affected customers and worker self assurance, Winters told the courtroom.
The company has since worked to protected selection supplies and stay the companies as going considerations.
The case is Firestar Diamond Inc., 18-10509 U.S. Bankruptcy Court, Southern District of New York (Manhattan).
The company’s attorney defined that background at a Manhattan federal bankruptcy courtroom hearing on Tuesday. Nirav Modi, the manager govt officer of the mum or dad company of the jeweler Firestar Diamond Inc., is beneath investigation for an alleged $2 billion fraud in India. Firestar isn’t related to the complaints filed via government, the corporate stated remaining month. Still, the seizure of property took its toll.
“That had a dramatic and surprising impact at the operations of the USA companies,” stated Ian Winters of Klestadt Winters Jureller Southard & Stevens LLP in the hearing on behalf of Firestar Diamond.
Two retaining companies and Nirav Modi for my part are making certain an present revolving credit score facility with Israel Discount Bank, in step with a submitting. Israel Discount didn’t straight away respond to a request for comment.
Nirav Modi, a jeweler who’s dressed actresses together with Kate Winslet and Priyanka Chopra, has been accused together with Mehul Choksi of defrauding Punjab National Bank. PNB alleges that the duo and their associates worked with some rogue staff and used fake promises to procure loans from abroad.
Supply chains were disrupted for the wholesale jeweler and its affiliates after Indian government close sure factories that provided lots of the company’s merchandise, and this affected customers and worker self assurance, Winters told the courtroom.
The company has since worked to protected selection supplies and stay the companies as going considerations.
The case is Firestar Diamond Inc., 18-10509 U.S. Bankruptcy Court, Southern District of New York (Manhattan).
PNB fraud probe drove Nirav Modi's Firestar Diamond to US bankruptcy filing
![PNB fraud probe drove Nirav Modi's Firestar Diamond to US bankruptcy filing]()
Reviewed by Kailash
on
March 08, 2018
Rating:
