PNB contemplates participating in bankruptcy proceedings of Nirav’s company

company is owned by absconding businessman Nirav Modi who has repeatedly avoided joining in the probe in the Rs 13,000 crore scam

Amid ongoing probe in the multi-crore PNB scam, the bank itself has now decided to join in the bankruptcy proceeding of Firestar Diamond.

The company is owned by absconding businessman Nirav Modi who has repeatedly avoided joining in the probe in the Rs 13,000 crore scam.

PNB officials, on the condition of anonymity, said that the bank is exploring all options for the recovery, including participating in the bankruptcy proceeding of company Firestar Diamond Inc.

It is also believed that the bank might even hire legal experts on this count.

However, the PNB has declined to make an official comment on the issue

.

The matter comes when Firestar Diamond filed for bankruptcy in a New York court.

Different investigating agencies, including CBI and Enforcement Directorate, are probing the fraud, dubbed as the biggest banking scam in the country.

It need be recalled that following the scam, the Reserve Bank has stopped banks from issuing LoUs for trade finance.

advt
Back to top button