Punjab National Bank (PNB) share price gained a percent in morning trade on August 26, a day after the bank informed the Ministry of Corporate Affairs (MCA), which spearheaded the corporate governance litigation in a foreign jurisdictional court, that it has received $3.25 million as the first tranche of recoveries.
Upon liquidation of the debtors’ assets by the US Chapter 11 Trustee, a sum of $11.04 million is available for distribution to unsecured creditors, including PNB.
The release also mentions that the ministry has initiated proceedings for disgorgement of monies from the perpetrators, which are the entities promoted or controlled by Nirav Modi or Mehul Choksi, following the bankruptcy filings of three companies promoted by Nirav Modi, namely Firestar Diamond, A Jaffee and Fantasy.
PNB requested MCA to support and join the bankruptcy proceedings in New York to help PNB realise its claims in the debtor's assets.
The stock price has added over 33 percent in the last 3 months and was trading at Rs 35.60, up Rs 0.40, or 1.14 percent. It has touched an intraday high of Rs 35.75 and an intraday low of Rs 35.55.
Currently, an Interpol global arrest warrant has been issued against Ami Modi, wife of prime accused Nirav Modi in the over $2 billion PNB bank fraud case, on charges of money laundering. The warrant has been issued by the global police body on the request of the Enforcement Directorate (ED).
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