PNB hires lawyers for bankruptcy proceedings of Nirav firm in US

Source: The Hitavada      Date: 09 Apr 2018 08:52:30



STATE-OWNED Punjab National Bank (PNB) has hired lawyers to represent itself in the bankruptcy proceedings of the US-based Firestar Diamond, a group company of billionaire diamantaire Nirav Modi who is accused of defrauding the lender of over Rs 13,000 crore.
Firestar Diamond approached a bankruptcy court in New York court in February.

“We have just engaged lawyers to represent our bank in the US bankruptcy petition as part of recovery process. If money has gone from our system and parked in that company, our bank’s views should be heard before deciding about insolvency petition,” PNB Managing Director Sunil Mehta told PTI in an interview.

Without disclosing the name of the lawyers, he said the bank is legally engaged in the matter of insolvency proceedings of Firestar Diamond and the concerned authorities have been requested to make the bank a party in the case. The US Trustee Programme oversees the administration of bankruptcy cases in the United States.