Nirav Modi Scam: PNB recovers Rs. 24.33 crore from proceeds of his asset sales in America
New Delhi | Jagran News Desk: In a major victory against the corporate fraudster Nirav Modi, Punjab National Bank has recovered Rs. 24.33 crore on proceeds of assets sold by the American debtors of entities belonging to fugitive businessman. This is the first time the Ministry of Corporate Affairs has recovered money from overseas. It is also the first time the MCA has intervened in a foreign case pertaining to an Indian company and recovered money.
The maiden repatriation of $ 3.25 million is an unprecedented achievement of the Government of India, Ministry of Corporate Affairs in its fight against corporate fraud in overseas territory. The Ministry also has initiated proceedings for disgorgement of monies from the perpetrators, i.e., the entities promoted and/or controlled by Mr. Nirav Modi/ Mr. Mehul Choksi.
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Notably, Punjab National Bank suffered heavily due to the Rs 14,000 crore Nirav Modi scam, which was unearthed in 2018. The state lender informed the Ministry of Corporate Affairs, Government of India that three companies promoted by Mr. Nirav Modi, namely M/s. Firestar Diamond, Inc., M/s. A. Jaffee, Inc. and M/s. Fantasy, Inc., had filed for Chapter 11 Bankruptcy Protection in the Southern District of New York, United States of America.
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PNB requested the Ministry of Corporate Affairs to support and join the bankruptcy proceedings in New York, USA in order to help PNB realize its claims in the debtors’ assets.
Earlier today, the Interpol issued a Red Corner Notice against Ami Modi, the wife of fugitive businessman Nirav Modi, in connection with money-laundering cases against her in India. She is accused of a role in money laundering in connection with the purchase of a sprawling flat at New York's Central Park for $30 million.
Posted By: Rakesh Kumar Jha