Tawai on PNB fugitive scam

More than 70 percent of creditors voted in favor

Mumbai: A Mumbai court has ordered liquidation of Nakshatra Brands, owned by fugitive diamond trader Mehul Choksi, who is facing charges of fraud amounting to hundreds of crores with a bank. This will be the second case in which the recovery is less than five per cent of the total amount. A Mumbai bench of the National Company Law Tribunal has ordered veto of the company.

The court has appointed Shantanu T. Ray, a senior partner of AAA Insolvency Professionals Llp, as the company's liquidator. Prior to the order, Vijay Kumar Garne was appointed as a Resolution Professional (RP) working with the corporate insolvency resolution process. More than 70 percent of creditors voted in favor of liquidation. Due to which RPA had to apply for liquidation.

In 2018, ICICI Bank filed for bankruptcy against the company. On which this judgment has been given. The company is allegedly involved in money laundering case by Punjab National Bank. A bankruptcy petition filed against Mehul Choksi's parent company Gitanjali James has been settled in a dedicated court. There were many hurdles in the resolution process of Nakshatra Brands.

RPs could not carry out an effective resolution process as the company's assets were in the possession of the authorities. We will make every effort to expedite the detachment of assets and release our mortgaged assets to financial creditors using our experience in sales, ”said Anil Goyal, Founder, Aaa Insolvency Professionals LLP.