PNB fraud probe drove Nirav Modi's jeweler to US bankruptcy filing

Punjab National Bank shares plunge most since 2004 in Mumbai

The international jewelry business that’s part of the empire controlled by Nirav Modi, the billionaire accused of masterminding India’s biggest bank fraud, was driven toward U.S. bankruptcy protection after Indian authorities began seizing and freezing assets.

The company’s attorney outlined that background at a Manhattan federal bankruptcy court hearing on Tuesday. Modi, the chief executive officer of the parent company of the jeweler Firestar Diamond Inc., is under investigation for an alleged $2 billion fraud in India. Firestar isn’t linked to the complaints filed by authorities, the company said last month. Still, the seizure of assets took its toll.

“That