A bankruptcy court in New York has dismissed a petition of fugitive of diamond merchant Nirav Modi and his associates, seeking dismissal of fraud allegations against them.
The allegations were made by Richard Levin, the court appointed trustee of three US corporations–Firestar Diamond, Fantasy Inc and A Jaffe–indirectly owned by Nirav Modi previously.
Levin had also sought a minimum compensation of USD 15 million for harm suffered by the debtors of Modi and his associates Mihir Bhansali and Ajay Gandhi.
Southern District of New York Bankruptcy Court Judge Sean H Lane issued the order last Friday, in a major blow to the Indian fugitive and his accomplices. ` SDNY Bankruptcy Court Judge Lane in a clear decision denied defendants Modi, Bansali and Gandhis motions to dismiss US Trustee Richard Levins amended complaint in the adversary proceeding arising out of Modis initial chapter 11 bankruptcy petition, alleging fraud, breach of fiduciary duties, RICO and related state law claims, Indian American attorney Ravi Batra told
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