Liquidation work in progress for Vijay Mallya, Nirav Modi companies

Even as insolvency proceedings against liquor baron Vijay Mallya and diamantaire Nirav Modi continue abroad, some of their firms in India that are undergoing liquidation under the insolvency and bankruptcy code have not seen a closure.

Firestar Diamond International, Nakshatra World and Firestar International are some of Nirav Modi’s companies that were sent for liquidation by the National Company Law Tribunal (NCLT) while the UB Group’s UB Engineering is undergoing liquidation.

At present, the assets of all the three companies of the former are attached by the Enforcement Directorate (ED) after the fugitive diamantaire fled the country.

Read more: Nirav Modi UK extradition appeal to be heard on December 14

“We are making efforts to get all the assets detached. As and when the ED detaches the assets, all of them including the inventory of gold, silver and other precious & semi-precious stones will have to be valued by independent valuers and then put up for auction”, Santanu T Ray, the liquidator of the companies, and senior partner AAA Insolvency Professionals LLP.

He added that they also intend to get the inventory certified by a grading agency like Gemological Institute of India so that the buyers are assured of what they are buying. Sources say the valuation of the jewellery that has been attached is worth at least a few hundred crore rupees.

So far as UB Engineering is concerned, some of the assets have been auctioned while others are left.

UB Engineering was one of the earliest cases referred for liquidation way back in 2017.

Sources say the service tax liens marked on the company were a hindrance in the liquidation. “Before we put up anything on sale, that had to be sorted out.

Now that all has been taken care of, we should be able to liquidate the company as soon as possible”, say sources close to the liquidator.

In its annual report for the year 2015-16, the company stated that as of March 31, 2016, the company had undisputed service tax claims of Rs 3.33 crore.

UB Engineering’s liquidation value is slightly above Rs 100 crore.

UB Engineering was earlier admitted by the insolvency court for resolution but was then referred for liquidation.