Published
Jul 13, 2018
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Five Nirav Modi firm directors given relief by NCLAT

Published
Jul 13, 2018

On July 13, the National Company Law Appellate Tribunal (NCLAT) gave an order to reprieve five directors of Nirav Modi’s business Firestar International. The decision is expected to lead to the directors' assets being attached to the Punjab National Bank (PNB) fraud case.

On July 13, NCLAT gave an order to reprieve five directors of Nirav Modi’s business Firestar International - Nirav Modi- Facebook


The government aims to attach the assets of the five Firestar International directors named as Sujal Shah, Gopal Krishnan Nair, Suresh Senapathy, Gautam Mukkavilli, and Sanjay Rishi to the PNB fraud case. The ED believes that these directors directly benefitted from the fraud which is why it wishes to attach their assets to the case along with those of Nirav Modi and Mehul Choksi. So far, around Rs 3,500 crore ($526 million) of Modi’s and Choksi’s assets have been added to the case and the ED is working to label the two as fugitive economic offenders so it can add more.

The NCLT said in a statement about its decision: "Though it was brought to the notice of the Tribunal that the respondent Companies, individuals including existing and erstwhile Directors, partners, trustees, beneficiaries and their associates or subsidiaries and firms had exposure with the PNB and are prima facie found to be beneficiaries of the fraud.. without waiting for the report of the SFIO it was not open to the Tribunal to exonerate some of the Respondents from the charges."

The five directors are currently barred from accessing their assets as part of the case. However, the NCLT decided to issue a reprieve to the five which allows them to withdraw up to Rs 1 lakh each month for expenses and this has also been granted to 15 other directors in the same position.

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