Major win for MCA and PNB as US court recognises bank’s claim over proceeds of Nirav Modi asset sales in America

Punjab National Bank received the first tranche of the payment a few days ago

In a major breakthrough for the Ministry of Corporate Affairs (MCA) and Punjab National Bank in the Nirav Modi scam, the US Bankruptcy court has recognised the claim of Punjab National Bank (PNB) on proceeds of any asset sold by the American debtors of Nirav Modi entities.

PNB received the first tranche of the payment a few days ago.

This is the first time the MCA has recovered money from overseas. It is also the first time the MCA has intervened in a foreign case pertaining to an Indian company and recovered money.

Since 2018, MCA Director (Legal) Sanjay Shourie and MCA Western Regional Director Manmohan Juneja have been pursuing the case via videoconference with the US.

MCA had filed a petition on February 26, 2018, in the bankruptcy proceedings against Nirav Modi in a US court, and sought to have PNB made a party to the sale of any assets of his entities.

Moneycontrol tried to reach PNB’s representative multiple times, but without success.

In its ruling in July 2018 recognising PNB’s claim over the American assets of the Nirav Modi entities, the US court said: “The Bankruptcy court also has signed a stipulation recognizing PNB’s agreement with the Chapter 11 Trustee that proceeds of any asset sales by the US debtors will be subject to PNB’s claims of constructive trust regarding the Modi entities.”

Courtesy: Money Control