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

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Reuters
Last Updated : Feb 28 2018 | 12:11 AM IST

(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 had earlier this month unearthed fraudulent transactions at one of its Mumbai branches, the amount of which could now be about $2 billion.

Modi, founder of Firestar Diamond, and his uncle Mehul Choksi, who owns Gitanjali Gems Ltd, are suspected of colluding with two employees from Punjab National Bank in the fraud.

(Reporting by Tanvi Mehta in Bengaluru; Editing by Bernard Orr)

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First Published: Feb 27 2018 | 4:44 PM IST

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