The way Nirav Modis entities have filed for bankruptcy in the US, ominously reveals the ingenious ways in which Indian companies through their multi-layered structures, move cash and other assets to other jurisdictions. Some of the US court filings have clearly suggested that assets of Modis entities in the US may have been obtained by using monies fraudulently obtained from Punjab National Bank.
The entire episode has brought to light the urgent need for a robust cross-border insolvency law in India. In this regard, the recent recommendations of the Insolvency Law Committee (ILC) on cross-border insolvency mark a crucial step forward. The committees recommendations are essentially in line with the provisions set out in the UNCITRAL Mode…
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