NCLT orders liquidation for Nirav Modi’s Firestar Diamond International Pvt. Ltd.
The National Company Law Tribunal has ordered the liquidation of Firestar Diamond International Pvt. Ltd., a group business of Nirav Modi, who stands accused of fraud at the Punjab National Bank.
As the first liquidation order of a business implicated in the 2018 PNB fraud scandal, Modi’s Firestar Diamond is set to be liquidated, following a ruling by the NCLT in Mumbai last week, Indo-Asian News Service reported. The NCLT bench of Suchitra Kanuparthi and V. Nallasenapathy approved the appointment of the official liquidator Santanu T. Ray to lead the process.
The tribunal ruled that, as Firestar Diamond does not have sufficient funds to repay the money it owes several banks, it must be liquidated. The business could not formulate a recovery plan to reply its debts.
“Since the cases are similar, people should not be surprised if other such liquidation orders follow and the public monies are washed out,” an anonymous diamond industry source told IANS.
Modi and his uncle and fellow accused Mehul Choksi own a number of jewellery and diamond businesses which are implicated in the case.
Nirav Modi is being held in a UK jail, where he is expected to remain until his extradition trial in London, which is scheduled for May this year.
If the UK court decides to extradite Modi to India to stand trial for his alleged crimes, Modi will still have an appeal process open to him.
Choksi is believed to be residing in Antigua where he fled before news of the scandal broke in the media. Indian authorities are working to extradite Choksi to India.
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