The international jewelry business that’s part of the empire controlled by Nirav Modi, the billionaire accused of masterminding India’s biggest bank fraud, was driven toward U.S. bankruptcy protection after Indian authorities began seizing and freezing assets, Bloomberg News reported. The company’s attorney outlined that background at a Manhattan federal bankruptcy court hearing yesterday. Modi, the chief executive officer of the parent company of the jeweler Firestar Diamond Inc., is under investigation for an alleged $2 billion fraud in India. Firestar isn’t linked to the complaints filed by authorities, the company said last month. Two holding companies and Modi personally are guaranteeing an existing revolving credit facility with Israel Discount Bank, according to a filing. Israel Discount didn’t immediately respond to a request for comment. Modi, a jeweler who’s dressed actresses including Kate Winslet and Priyanka Chopra, has been accused along with Mehul Choksi of defrauding Punjab National Bank. PNB alleges that the duo and their associates worked with some rogue employees and used fake guarantees to obtain loans from abroad.
