Firestar Diamond, the international jewelery business owned by Nirav Modi, who is currently involved in the Punjab National Bank scam, filed for bankruptcy in the US on Monday.
According to court filing in the Southern District of New York, the company has listed assets and liabilities in the range of $50 million to $100 million.
On Monday, it was revealed that the PNB scam is a lot bigger than earlier reported. The fraud reportedly perpetrated by Modi and his uncle Mehul Choksi is said to be around $2 billion, about $204 million more than the previous estimate.
The Enforcement Directorate, in the meantime, is looking for information about Modi and Choksi's assets in six foreign countries.
Modi has been absconding ever since the scam came to light, but according to his lawyer, the billionaire is away on business purpose.
Modi's lawyer Vijay Aggarwal said: "This is your perception that he is absconder. He (Nirav Modi) is not absconding. He has a global business and he went out of India for business purpose. Now his passport has been revoked. His family members, some of them are foreign nationals, also stay abroad most of the time."
The PNB has lodged two financial fraud complaints of Rs. 11400 crore and Rs 280 crore against Modi, his family members and Choksi, owner of Gitanjali Gems. On February 16, the ministry of external affairs has revoked the passports of those involved in the scam for two weeks.
“If the accused do not honour the summons and the agency believes that they are not cooperating with the probe then the agency can move the PMLA court for a non-bailable warrant,” an ED official told Mint. “Even if the passport is suspended they can request the foreign country in which they are currently residing for travel documents,” the person said.
