NY Bankruptcy Court dismisses Plea by Nirav Modi for dismissal of Fraud

Sanika Deshpande-

Published On: October 19, 2021 at 11:25 IST

Nirav Modi is the prime accused in the Punjab National Bank scam. The New York Court dismissed a Petition filed by the diamond merchant Nirav Modi and his associates, which sought dismissal of his Fraud allegations made by Richard Levin.

Levin had sought compensation of 15 million dollars for the harm suffered by Nirav Modi and his Associates, Mihir Bhansali and Ajay Gandhi.

In the Petition filed by Levin, he listed examples of how Modi and his associates benefited from the LoU’s (Letters of Undertaking), which were issued fraudulently.

In the fraud, Nirav Modi and his associates carried out a scheme to obtain loans, credits or other funds under false pretences without any collateral. They planned to scam numerous banks, including the PNB.

Judge Sean H. Lane issued the Order on October 15th“SDNY Bankruptcy Court Judge Lane in a clear decision denied Defendants Modi, Bansali and Gandhi’s motions to dismiss US Trustee Richard Levin’s amended complaint in the adversary proceeding arising out of Modi’s initial chapter 11 bankruptcy Petition, alleging fraud, breach of fiduciary duties, RICO and related state law claims,” Indian American Attorney Ravi Batra said.

Batra also said that Modi had taken his profits back into his company, of which Richard Levin is the trustee. “But to get the ill-gotten funds by bank fraud out of his companies, he engaged in a separate fraud to hide those withdrawals for personal benefit as if they were ordinary business transactions,” Batra said.

The PNB and other banks had lost an excess of $1 billion as a result of the fraud.

Also Read: Nirav Modi, PNB Scam Chronology and Extradition Treaty

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