New Delhi: In a major setback to a petition filed by diamond merchant Nirav Modi, a New York bankruptcy court dismissed the plea to quash the fraud charges against the fugitive and his accomplices.
Nirav Modi, who is currently lodged in a UK jail, is challenging India’s efforts to extradite him to face charges of fraud and money laundering in the Punjab National Bank (PNB) scam case.
What were the allegations?
The allegations in the US are leveled by Richard Levine, a court-appointed trustee of three US corporations – Firestar Diamond, Fantasy Inc., and A Jaffa – indirectly owned by Nirav Modi.
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Levin demanded a minimum of $15 million compensation for “losses” caused to debtors of Modi and his associates Mihir Bhansali and Ajay Gandhi.
Indian-American Attorney Ravi Batra told PTI that in a clear ruling, Judge Sean H Lane of the Southern District of New York Bankruptcy Court upheld Gandhi’s proposals to dismiss the amended complaint by defendants Modi, Bhansali and US trustee Richard Levine. rejected.
According to the order, Batra said Modi had fraudulently set up a scheme to defraud Punjab National Bank and others to the tune of over $1 billion by selling his company in the form of additional sales to falsely increase the stock price or valuation of the company. I mortgaged my profits back.
Indian US Attorney Ravi Batra further explained: “The court’s refusal to quash the RICO (Racketeer Influence and Corrupt Organization Act) count is legally satisfactory, but a hole in the celebration by law-abiding banks and people is: once appealed, and Modi is accused in whole or in part of the US trustee’s amended complaint, and the case goes to the jury and wins the verdict, it is only the property of Modi and his accomplices, whether They can be forced to immerse.
(with PTI inputs)
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