Nirav Modi's Firestar Diamond files for bankruptcy in US

The development comes after PNB increased its fraud hit estimate by $204.25mn.

Feb 27, 2018 12:02 IST India Infoline News Service

Nirav Modi’s Firestar Diamond Inc, has filed for bankruptcy in the US. The development comes after PNB increased its fraud hit estimate by $204.25mn. Firestar has listed assets and liabilities in the range of $50mn to $100mn in the court filing in the New York, as per media reports.

Last week, CBI had arrested Vipul Ambani, the president (finance) of Nirav Modi’s Firestar Diamond, as per the media reports. Firestar blames supply chain challenges and liquidity for the bankruptcy filing. Earlier, PNB had announced on February 14, 2018, that it had unearthed a $1.77 bn fraud by firms led by Nirav Modi and his uncle, Mehul Choksi. The fraud includes the issue of unauthorized letters of undertakings.

Punjab National Bank ended at Rs98.35, down by Rs13.55 or 12.11% from its previous closing of Rs111.90 on the BSE. The stock traded below its 100 DMA.

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