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Nirav Modi’s Firestar Diamond Inc files for bankruptcy in US
Washington, Feb 27 (IANS) Firestar Diamond Inc, the US company of Indian billionaire diamond trader who is embroiled in India’s biggest-ever bank fraud, has filed for bankruptcy in a New York court, under chapter 11.
According to the court filing at the Southern District Of New York on Monday, the firm listed assets and liabilities in the range of $50 million and $100 million. A Chapter 11 filing under the Bankruptcy code usually allows a company to reorganise its business.
Modi has been accused, along with his partner Mehul Choksi, of defrauding the Punjab National Bank of Rs 12,600 crore, with Rs 1,300 being added to the fraud kitty on Monday night. Earlier, the amount stated to have been defrauded by Modi and Choksi groups was Rs 11,300 crore. Both the Central Bureau of Investigation and the Enforcement Directorate are investigating the fraud.
For Modi, both the events — accusation of increased fraud amount and the filing for bankruptcy — came a day before his 47th birthday. Modi has been shown as inventor in details filed against his company registered at 5th Avenue in New York. The Chief Executive Officer is shown as Mihir Bhansali and the Chief Financial Officer Ajay Gandhi.
According to PNB, Modi, Choksi and their associates worked with rogue PNB employees and used fake guarantees to obtain loans from abroad which were then illegally rolled over.
The PNB disclosed the massive fraud earlier this month detailing that the luxurious diamond merchants leveraged the loopholes in the banking system and sought letters of undertaking (LoU) and Foreign Letters of Credit (FLCs) raising credit from foreign banks to pay its merchants.
The filing mentions Firestar’s A. Jaffe Inc. wedding jewellery affiliate and Fantasy Inc. affiliate. The numbers of creditors were estimated at between 50 and 99.
According to the Nirav Modi group website, the company’s diamond operations are spread across the US, Europe, the Middle East and the Far East.
–IANS
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Dr. Abhishek Verma Dedicates a Shelter in Memory of His Mother, Veena Verma, at KGMU; Inaugurated by Daughter Nicolle Verma
World-renowned business tycoon Dr. Abhishek Verma has supported Foodman Vishal Singh’s Hunger-Free World mission. In memory of his mother, Late Veena Verma, who was a 3 term Rajya Sabha MP.
Dr. Verma dedicated a state-of-the-art free permanent shelter for the attendants of patients at KGMU Medical University, Lucknow, under the aegis of Vijay Shree Foundation. His daughter, Nicolle Verma, inaugurated the shelter.
During the event, Foodman Vishal Singh honored Nicolle Verma by presenting her with a memento. Mrs. Nidhi Sharma and Avantika Yadav, associated with the organization, welcomed her with garlands. Following this, Nicolle Verma distributed essential items to the attendants and also handed out fruits. She became emotional remembering her grandmother on her birth anniversary.
On this occasion, she also inaugurated the “Veena Verma Sevalaya” in memory of her grandmother, Veena Verma, to serve the attendants. She expressed, “I feel proud that my family is engaged in nation-building as well as social service. Today, in collaboration with Vijay Shree Foundation founder Foodman Vishal Singh Ji, I feel immensely proud to dedicate this shelter for the poor, helpless, and needy attendants of patients battling serious illnesses like cancer. I am honored to be associated with the Hunger-Free World Mission for humanity.”
Inspired by the continuous humanitarian service provided by Vijay Shree Foundation over the past 17 years, Nicolle Verma donated 10 lakh rupees to support the cause. The purpose of this donation is to ensure that services continue for the needy attendants of patients suffering from severe illnesses in hospitals, as facilitated by Foodman Vishal Singh.
It is noteworthy that Dr. Abhishek Verma’s family has a legacy of public and philanthropic service. They are helping millions to carry forward the values and service work of their parents. On the occasion of his mother’s birth anniversary, Dr. Abhishek Verma dedicated this state-of-the-art permanent shelter at Lucknow Medical College to serve the attendants of patients through the Vijay Shree Foundation.
Supporting Foodman Vishal Singh’s Hunger-Free World mission, Dr. Abhishek Verma assured that he would continually support keeping this flame of humanity alive. He also promised to assist in providing medicines to the helpless patients.
Continuing her grandmother’s legacy of service, Nicolle Verma personally served food to the needy patients and attendants. She said, “It is our good fortune to have received the joy of doing this noble work today through Foodman Vishal Singh. I have taken another step forward in carrying my family’s values and cooperation by joining hands with the Vijay Shree Foundation. My father taught me to serve and help the needy, and I feel happy when I bring a smile to someone’s face.”
On the birth anniversary of the late Veena Verma, the event organizer, Vijay Shree Foundation founder Foodman Vishal Singh, said, “We feel proud and happy that Dr. Abhishek Verma, a globally renowned business tycoon, has extended his support to uplift our country from the hunger index. Today, on his mother’s birth anniversary, he inaugurated a state-of-the-art permanent shelter at Lucknow Medical College, which will always be helpful for the needy attendants of patients. It is a pleasure for me and the organization to receive the affection of Mr. Verma.”
The event was attended by General Manager Verma Family Office Hemant Garg, Sonu Rajput, and the organization’s volunteers, including Sandeep Singh, Parmeshwar Ji, Prashant Rao Gautam, Balram Singh, Ramesh Chaudhary, Suman, Jeetu, Anil, Suraj, Vinay, Manish Bhadauria, Manas Mehrotra, Vivek, Apurv, Happy, and others.