Image credit: Gerd Altmann (Pixabay)
The National Company Law Tribunal, Mumbai Bench (NCLT) has ordered the liquidation of absconding diamantaire Nirav Modi’s group company, Firestar Diamond International Pvt. Ltd.
Nirav Modi, along with his uncle Mehul Choksi and others are accused of masterminding one of the biggest banking frauds, which was first admitted by Punjab National Bank (PNB) in February 2018, followed by other public sector banks.
This is said to be the first-ever liquidation order for any company embroiled in the fraud schemed by the Modi-Choksi duo before they fled the country. The beleaguered company had insufficient assets to repay the amounts due to the creditors and no resolution plan was possible which could enable the company to clear all its debts.
A consortium of banks including PNB, Oriental Bank of Commerce, Bank of India, Bank of Baroda, Bank of Maharashtra, UCO Bank, Corporation Bank, United Bank of India, have been frantically trying to recover their dues from the duo in different cases.
Incidentally, the National Company Law Tribunal is a quasi-judicial body in India that adjudicates issues relating to Indian companies. The tribunal was established under the Companies Act 2013 and was constituted on 1 June 2016 by the Government of India.
Aruna Gaitonde, Editor in Chief of the Asian Bureau, Rough & Polished
Incidentally, the National Company Law Tribunal is a quasi-judicial body in India that adjudicates issues relating to Indian companies. The tribunal was established under the Companies Act 2013 and was constituted on 1 June 2016 by the Government of India.
Aruna Gaitonde, Editor in Chief of the Asian Bureau, Rough & Polished
