US with Nirav Modi on PNB scam
US with Nirav Modi on PNB scam
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WASHINGTON: A US court has given an interim stay on the debt collection of creditors from Firestar Diamond, the company of Nirav Modi who is the chief accused of the PNB scam. Nirav Modi’s company has applied to the court to declare bankruptcy. The court has said in the order that with the application of the process of insolvency, most of the activities related to the collection have been stopped automatically. This means that now generally the borrowers cannot take any step to recover the debt of the company or its property.

In the Southern District of New York, the court has said in two pages order that most of the activities related to the collection have been automatically stopped with the application of bankruptcies. Firestarter Diamond has claimed protection under bankruptcy laws in the United States and filed a 'Chapter 11' petition in the court. According to the company's website, its business has spread in many countries including the US, Europe, West Asia and India, it has described the problems in the cash and supply chain as responsible for its current situation.

According to documents filed in court, the company has mentioned about $ 10 million of debt. Nirav has received great relief from this decision of the US Court. The court will convene a meeting of lenders on March 30. It is worth mentioning that Neerav Modi has gone abroad to make a scam worth Rs 12,717 crore (about $ 2 billion) from Punjab National Bank. 

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