Nirav Modi's Firestar Diamond files for bankruptcy in U.S.

Gitanjali Gems

27/02/2018 11:06

Feb 27 (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  PNBK.NS  had 
earlier this month unearthed fraudulent transactions at one of 
its Mumbai branches, the amount of which could now be about $2 
billion. urn:newsml:reuters.com:*:nL4N1QH22M 
    Modi, founder of Firestar Diamond, and his uncle Mehul 
Choksi, who owns Gitanjali Gems Ltd  GTGM.NS , are suspected of 
colluding with two employees from Punjab National Bank in the 
fraud.  urn:newsml:reuters.com:*:nL4N1QD4L8 
 
 (Reporting by Tanvi Mehta in Bengaluru; Editing by Bernard Orr) 
 ((tanvi.mehta@thomsonreuters.com; +91 80 67494756 ; Reuters 
Messaging: tanvi.mehta.thomsonreuters.com@reuters.net)) 
 
Keywords: FIRESTAR DIAMOND BANKRUPTCY/