In first win, PNB gets Rs 24 crore from NiMo firms

New Delhi: The government on Tuesday claimed a victory in its bid to help Punjab National Bank (PNB) recover Rs 14,000 crore from elusive diamantaire Nirav Modi after it received $3.2 million (over 24 crore) as the first tranche of recovery in the case where the ministry of corporate affairs had intervened in bankruptcy action in the US.

“The maiden repatriation of $3.2 million is an unprecedented achievement of the government of India, ministry of corporate affairs in its fight against corporate fraud in overseas territory. The ministry also has initiated proceedings for disgorgement of monies from the perpetrators, i.e., the entities promoted and/or controlled by Nirav Modi/ Mehul Choksi,” an official statement said.

In 2018, PNB had informed MCA about three of Nirav Modi’s companies Firestar Diamond Inc, A. Jaffee Inc and Fantasy Inc – filing for Chapter 11 Bankruptcy Protection in the southern district of New York.