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Three Companies of Nirav Modi File Bankruptcy Petition in USA

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Bankruptcy application filed by three companies of Nirav Modi in USA, surprisingly No mention has been made of outstanding loan amount of Punjab National Bank (PNB) in the petition. Significantly, Modi is the main accused in the 2 billion dollar scam in the government bank PNB. Only documents from bankruptcy companies filed by Nirav Modi companies are mentioned as Outstanding loan of HSBC and Israeli Discount Bank (IDB) bank, whose total 2 million dollars is owed to two companies. Modi had given a personal guarantee to borrow from IDB, as well as two other companies had also given a guarantee.

However, if these three companies of Nirav Modi become eligible for bankruptcy in the US, then the PNB will be obstructing the recovery of their loans from these companies. Because filing in bankruptcy case stops the loan against the property of the debtor and the debtor and automatically takes action against the borrower's properties.

Bankrupt documents say, "If you try to recover your debt or take any other action, it will be a violation of the bankruptcy code and you can be penalized for it." Nirav Modi's three companies - Firestarter Diamond Inc. (FDI), Fantasy Inc (FI) and A Jeff Inc. (AJI) have filed petitions for bankruptcy in the US Southern Bankruptcy Court.1

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