March 2, 2018 2:19 PM

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US court grants interim stay on debt collection from Firestar

<div><br />''</div>''<div>A US court has passed an interim order that prevents creditors from collecting debt from Nirav MoAdi-owned Firestar Diamond Inc. after it filed for bankruptcy.&nbsp;</div>''<div><br />''</div>''<div>Nirav Modi, who is being investigated by multiple probe agencies for allegedly cheated the Punjab National Bank to the tune of around 12,000 crore rupees, has a majority stake in Firestar Diamond and its other sister companies.&nbsp;</div>''<div><br />''</div>''<div>Entering an order for relief, the US bankruptcy court in the Southern District of New York said, the filing of case imposed an automatic stay against most collection activities.&nbsp;</div>''<div><br />''</div>''<div>The court said, creditors who violate the stay will have to pay actual and punitive damages and attorneys fees.</div>''<div><br />''</div>''<div>Meanwhile, reacting to media reports that Nirav Modi is in the US, the State Department said, it cannot confirm the news.&nbsp;</div>''<div><br />''</div>''<div>Asked if it is providing any assistance to the Indian government in tracing the diamond jeweller, the department's spokesperson said, they would refer the matter to the Department of Justice.</div>

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