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PNB fraud: Banks may liquidate Nirav Modi's Firestar International

The lenders are divided over the future of the company as the Enforcement Directorate has initiated proceedings under the Prevention of Money Laundering Act (PMLA) against the Nirav Modi group and assets of the parent company are currently in the enforcement agency’s custody.

By Mohit Bhalla, ET Bureau |Updated: June 30, 2020, 09.06AM IST
NEW DELHI: Banks are weighing liquidation of Nirav Modi group’s parent company Firestar International after the proposal was deliberated upon at a creditors meeting on Friday, said sources aware of the developments. The lenders are divided over the future of the company as the Enforcement Directorate has initiated proceedings under the Prevention of Money Laundering Act (PMLA) against the
agency had claimed were proceeds of financial crime committed by its former promoters. Such rulings, these experts said, could make it attractive for buyers to pursue assets such as Firestar International and prevent them from going into liquidation. The Enforcement Directorate has subsequently challenged the NCLAT’s decision in the Bhushan Power and Steel case in the Supreme Court.

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