ED moves court for NBW against Nirav Modi; His firm files for bankruptcy in US |
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Enforcement Directorate (ED) has moved a special court in Mumbai, seeking issuance of a non-bailable warrant (NBW) against diamond trader Nirav Modi, a key accused in the PNB fraud case.
On Monday, the court had allowed the ED's plea seeking issuance of Letters Rogatory (LRs) to six countries for obtaining information about the overseas businesses and assets of Nirav Modi.
The court, set up under the Prevention of Money Laundering Act, will hear today Nirav Modi's lawyer on the issue of his locus standi to address the court in the absence of his client.
On January 31, the CBI had registered an FIR against Nirav Modi, his companies, and diamond jeweller Mehul Choksi in connection with the PNB fraud.
Meanwhile, India's biggest bank fraud accused Nirav Modi's international jewellery business has filed for bankruptcy in the United States.
Firestar Diamond Inc filed the Chapter 11 petition in the New York Southern Bankruptcy Court on Monday. The case has been assigned to Judge Sean H. Lane and an order for relief entered.
Firestar Diamond, which on its website states that its operations span the US, Europe, the Middle East, the Far East and India, blamed liquidity and supply chain challenges. The court document said, it listed up to 100 million US Dollars in assets and debt.
Nirav Modi, his uncle Mehul Choksi and firms linked to them are alleged to have defrauded Punjab National Bank of close to 12,717 crore rupees.
The jewellers and companies linked to them had allegedly colluded with PNB officers to obtain fake bank guarantees to get loans from overseas branches of Indian banks, including Allahabad Bank, Axis Bank and UCO Bank.
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