The jewelry business on an international level under the billionaire who has been accused of being behind the biggest bank fraud of India, Nirav Modi, was driven towards the US bankruptcy protection after the authorities of India started to seize as well as freeze the assets. There was a hearing in the Manhattan federal bankruptcy court after which the same as outlined by the attorney of the company. Nirav Modi, who is the chief executive officer of the parent company of the jeweler Firestar Diamond Inc, has been kept under investigation for a fraud of $2 billion in India. However, the company said that Firestar is not linked to the complaints which have been filed by the authorities. Nevertheless, the assets were seized.
Ian Winters of Klestadt Winters Jureller Southard & Stevens LLP on behalf of Firestar Diamond said that this event has had a huge impact on the operations of the US companies in the hearing. Two holding companies along with Nirav Modi are ensuring that an existing revolving credit facility with the Israel Discount Bank will be set up as per the filing. However, Israel Discount did not respond to any comment. Nirav Modi is a jeweler who has dressed actresses including Priyanka Chopra and Kate Winslet and has been accused along with Mehul Choksi for carrying out the fraud in Punjab National Bank.
After the Indian authorities shut down certain factories which provided most of the company’s products, the supply chains were disturbed for the wholesale jeweler and as a result, the confidence of the customers as well as employees was affected. The company has worked towards securing all the alternative supplies and keep the businesses going ever since.