Tuesday, 20 February 2018

Nirav Modi Claimed That His Liabilities Are Much Less Than the Reported Rs11, 400 Crore

Nirav Modi wrote a letter to the bank, where he has requested the bank to support his intention and efforts to repay debt. He has also claimed that his liabilities are much less than the reported amount of Rs11,400 crore. Although there is no authenticity of the letter that is being circulated on instant messenger networks, yet a reliable source has said that this is genuine.

He has also quoted in his letter that the overzealousness of bank may end up by closing the doors on his ability to clear the dues. Nirav Modi also pegged the money his companies owe to the bank and this was under Rs 5,000 crore. Nirav Modi had also stated that his relatives booked in the cases filed by CBI have nothing to do with the case.

He went on saying that the over- anxiety of bank to recover their dues immediately, despite his offer has destroyed his brand image as well as the business. As a result, he is now restricted to pay the dues as there is a trail of unpaid debts.

According to the news that is being broadcasted by media, it shows that the liability of the Nirav Modi Group is over Rs11,000 crore. However, Nirav Modi claimed that the news, of which you are aware of, is entirely incorrect and the liability of the company is substantially less. Nirav Modi also stated that even after bank’s complaint was filed, he wrote a latter, where he requested the bank to allow him to sell Firestar Group so that he can recover the money from there. By selling his valuable assets he would have recovered the money that may be found due not just from Firestar Group, but also from the three firms.

Approximately, the valuation of the business was Rs 6,500 crore. This would definitely have helped Modi in reducing the debt to the banking system.

He also said that the invalid rep­orting led to the seizure of operations, which has resulted in the ceasing of Firestar Int­ernational Pvt. Ltd and Firestar Diamond International Pvt. Ltd. This has now endangered the firm’s ability to repay the dues.

CBI has seized gold, diamonds, and precious stones, valued over Rs5,700 crore in nationwide raids. In the letter, Modi mentioned that his assets, FIPL/FDIPL including the three firms could have settled the entire amount that is due. But now, it might not be possible.

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