NCLAT sets aside order giving relief to 5 directors of Nirav Modi firm in PNB fraud case

The National Company Law Appellate Tribunal (NCLAT) today set aside an NCLT order giving reprieve to independent directors of Nirav Modi-led Firestar International, paving the way for the government to attach their assets to recover dues related to the PNB fraud case.

Allowing the government's appeal, the tribunal set aside the NCLT Mumbai order observing that they had exposure with the PNB and are found to be beneficiaries of the fraud, and without waiting for the report of the SFIO it was not open to exonerate some of the respondents.

"Though it was brought to the notice of the Tribunal that the respondent Companies, individuals including existing and erstwhile Directors, partners, trustees, beneficiaries and their associates or subsidiaries and firms had exposure with the PNB and are prima facie found to be beneficiaries of the fraud.. without waiting for the report of the SFIO it was not open to the Tribunal to exonerate some of the Respondents from the charges," the NCLAT said.

It further said: "For the reasons aforesaid, we set aside the impugned order dated April 2, 2018."
While, NCLAT continued the orders of NCLT, which had allowed Anil Umesh Haldipur and Nazura Yash Ajaney to withdraw Rs one lakh per month from their bank accounts, while