Nirav Modi firm: India may stall U.S. action, govt. steps up efforts to recover funds
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The Ministry of Corporate Affairs is considering legal options to stall bankruptcy proceedings in the U.S. against diamantaire Nirav Modi group firm Firestar Diamond, amid stepped up action in the more than ₹13,000-crore scam at the Punjab National Bank (PNB), according to officials.
The move comes close on the heels of the National Company Law Tribunal (NCLT) restraining more than 60 entities, including Mr. Modi, jeweller Mehul Choksi, various individuals, companies and limited liability partnership firms, from selling their assets.
A multi-agency probe, including one by the Serious Fraud Investigation Office (SFIO), into the scam is progressing. According to officials, Firestar Diamond is a subsidiary of one of the companies against whom the NCLT had passed the order. Since there is a strong possibility of fund diversion among various group entities, money could well have been diverted to Firestar Diamond, they added.
They said the effort would be to try to stall the bankruptcy proceedings so that the company’s assets are not liquidated before completion of the probe.
Explores options
Meanwhile, sources said that the PNB is looking to be part of the bankruptcy proceedings against the firm as a claimant.
The bank is exploring all options for the recovery, according to the sources.