Nirav Modi's Firestar Diamond files for bankruptcy in the United States

The company has listed assets and liabilities in the range of $50 million to $100 million, according to a court filing in the Southern District Of New York on Monday.

Published: 27th February 2018 05:12 PM  |   Last Updated: 27th February 2018 05:12 PM   |  A+A-

PNB fraud case

A file image of security guards standing inside a Nirav Modi showroom during a raid by the Enforcement Directorate. (Photo | Reuters)

By Reuters

Firestar Diamond Inc, the flagship company of billionaire Nirav Modi who is at the centre of India's biggest-ever bank scam, has filed for bankruptcy in the United States.

The company has listed assets and liabilities in the range of $50 million to $100 million, according to a court filing in the Southern District Of New York on Monday.

Indian state-run lender Punjab National Bank had earlier this month unearthed fraudulent transactions at one of its Mumbai branches, the amount of which could now be about $2 billion.

Modi, founder of Firestar Diamond, and his uncle Mehul Choksi, who owns Gitanjali Gems Ltd, are suspected of colluding with two employees from Punjab National Bank in the fraud.



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