PNB worried Nirav Modi won't pay up, chasing the bucks in US now

PNB has not been shown as a creditor in the bankruptcy documents filed in a New York court by three companies affiliated with Nirav Modi

Punjab National Bank is worried that it wouldn't be able to recover its dues from diamantaire Nirav Modi. 

In a US court filing, it has requested that Nirav Modi’s Firestar Diamond and other firms should not be allowed to fast-track the sale of their assets, according to a report by the Livemint. PNB has suggested that the sale by Nirav Modi's firms could hurt the bidding process amid the Rs 140-billion scam at the bank and harm its chances of recovering money from the diamantaire.

PNB 'not' a creditor to Firestar: Last month, Firestar Diamond, a company owned by Nirav Modi, filed for bankruptcy in a New York court. The US Trustee Program oversees administration and litigation for enforcement of the bankruptcy law.

According to news agency IANS, PNB is not shown as a creditor in the bankruptcy documents filed in the New York court by three companies affiliated to Nirav Modi.

But, the document acknowledges that the filing of criminal complaints by PNB regarding allegations of "unauthorised loans" to Nirav Modi and affiliated foreign companies were the "events leading" to the filing of the bankruptcy petition.

The only banks mentioned as creditors are HSBC and Israel Discount Bank (IDB), which have outstanding loans totalling $20 million to two of the Nirav Modi companies. The IDB's revolving credit facility is guaranteed by Modi personally, as well as by two other companies, the document said.

PNB to clear other banks' dues: PNB on Wednesday decided to clear all other banks’ dues, amounting to Rs 65 billion, to be paid before March 31 in relation to the Rs 140-billion fraud case.

The decision will help the bank settle claims worth Rs 65 billion against LoUs issued to seven banks — Union Bank of India, Allahabad Bank, Bank of India, Canara Bank, State Bank of India (SBI), Axis Bank, and UCO Bank.