Punjab National Bank (PNB) has received ₹24.33 crore or $3.25 million as the first tranche of recoveries in the Nirav Modi fraud case, and has informed the Ministry of Corporate Affairs which spearheaded the corporate governance litigation in a U.S. court.
“Upon liquidation of the debtors’ assets by the U.S. Chapter 11 Trustee, a sum of $ 11.04 million (equivalent of ₹82.66 crore) is available for distribution to unsecured creditors including PNB. Further recovery therefrom is subject to other expenses and settlement of claims of other claimants,” added the official statement. It also termed the repatriation of the initial tranche as an “unprecedented achievement” in the government’s fight against corporate fraud in overseas territories.
The Ministry has also started proceedings for disgorgement of monies from the perpetrators, that is, the entities promoted or controlled by Nirav Modi and Mehul Choksi, added the statement.
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