Nirav Modi's company is so poor that it can't buy a medium-size pizza
4 min read . Updated: 19 Mar 2023, 02:23 PM IST
Premium- Nirav Modi's Firestar Diamond International Pvt Ltd (FDIPL) has a bank balance of ₹236
Nirav Modi, the fugitive diamond merchant, is currently going through his worst financial phase. Once, a renowned billionaire has now gone bankrupt completely.
Nirav Modi's debacle began after he got arrested by London police in 2019. He is a prime accused of major financial irregularities running into thousands of crores linked to the Punjab National Bank (PNB).
According to a report by Times of India, Modi's Firestar Diamond International Pvt Ltd (FDIPL) has a bank balance of ₹236.
The report said that in one of the bank accounts of Modi's firm only ₹236 is left after Kotak Mahindra Bank transferred ₹2.46 crore to SBI towards income tax dues, two other banks--Union Bank of India and Bank of Maharashtra, transferred only a part of the total amount of due. The liquidator appointed for the company has moved to the special court seeking the release of the money.
In 2021, the court had directed that the amount be released to the claimant, Punjab National bank, through the liquidator appointed concerning FDIPL under the Fugitive Economic Offenders Act.
In response to the liquidator's plea, the special court directed UBI and BoM to comply with its earlier order within three months and transfer money to the liquidator's account.
The court said that both these banks did not comply with orders. The liquidators told the court it had informed the Union of Bank of India to transfer the amount lying in the company's account. It was alleged that the bank did not respond to the emails. The bank only transferred ₹17 crore and not the balance.
Separately, last week a report came wherein Nirav Modi claimed that he has no funds and is resorting to borrowing money to pay the court-ordered legal costs amounting to more than 150,000 pounds.
On being asked how he intended to finance the monthly amount, Nirav told the court he had been borrowing money as he did not have sufficient funds because his assets had been frozen in India over the extradition proceedings.
There are three sets of criminal proceedings against the diamantaire in India – the CBI case of fraud on the PNB which caused losses equivalent to over 700 million pounds, the ED case relating to the alleged laundering of the proceeds of that fraud and a third set of criminal proceedings involving alleged interference with evidence and witnesses in the CBI proceedings.
