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US bankruptcy court orders investigation against Nirav Modi in PNB fraud case

Team SoOLEGAL 8 May 2018 1:02pm

US bankruptcy court orders investigation against Nirav Modi in PNB fraud case

On a plea filed by PNB for carrying out Bankruptcy proceedings against Nirav Modi’s companies Firestar Diamond Inc, A Jaffe Inc and Fantasy Inc for defrauding the lender, the court ruled that investigation has to be carried before such a process can be initiated.

The court has appointed Alvarez & Marsal (A&M) to conduct the inquiry. The team of investigators will include senior executives from India. Most likely it is going to be led by Dhruv Phophalia, the Managing Director of A&M.

PNB has hired Indian law firm Shardul Amarchand Mangaldas and lawyers to represent it in US bankruptcy court.

Nirav Modi and his uncle Mehul Choksi are alleged to have cheated PNB and other banks in connivance with some bank officials to the tune of Rs 11,500 crore.They are said to have used fraudulent Letters of Undertaking(LOU) to defraud the bank. 



Tagged: PNB   Nirav Modi   US Bankruptcy Court   LOU  
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