New York's bankruptcy court dismisses plea filed by Nirav Modi, associates

The plea of fugitive diamond dealer Nirav Modi and his partners, seeking the discharge of fraud claims against them, was denied by a bankruptcy court in New York. Richard Levin, the court-appointed trustee of three US corporations—Firestar Diamond, Fantasy Inc, and A Jaffe—indirectly held by Nirav Modi in the past, stated the claims. Levin had also asked for a minimum of USD 15 million in damages for ôharmö caused to Modi's debtors by his colleagues Mihir Bhansali and Ajay Gandhi. Judge Sean H Lane of the Southern District of New York Bankruptcy Court issued the ruling last Friday, dealing a huge blow to the Indian fugitive and his associates.

"In a clear judgement, US Trustee Richard Levin's revised complaint in the adversary action coming out of Modi's initial chapter 11 bankruptcy petition, alleging fraud, violation of fiduciary responsibilities, RICO, and associated state law claims," Indian American attorney Ravi Batra told PTI. According to Batra, who explained the 60-page decision, Modi re-invested his earnings in his firm as new sales to artificially inflate the stock price/company valuation by putting up a scheme to defraud Punjab National Bank and others of nearly USD1 billion.


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