Liquidation work in progress for the companies Vijay Mallya, Nirav Modi

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Even though insolvency proceedings against liquor baron Vijay Mallya and diamond dealer Nirav Modi continue overseas, some of their companies in India that are in liquidation under the Insolvency and Bankruptcy Code do not have not been closed.

Firestar Diamond International, Nakshatra World and Firestar International are some of the Nirav Modi companies that have been put into liquidation by the National Company Law Tribunal (NCLT) while UB Engineering of the UB group is in the process of being wound up.

Currently, the assets of the first three companies are seized by the Directorate of Execution (ED) after the fugitive diamond dealer fled the country.

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

“We are making efforts to get all the assets detached. As the ED detaches the assets, all including the inventory of gold, silver and other precious and semi-precious stones will need to be appraised by independent experts and then auctioned, ”Santanu T Ray, the corporate liquidator and senior partner AAA Insolvency Professionals LLP.

He added that they also plan to have the inventory certified by a grading agency like the Gemological Institute of India so that buyers can rest assured of what they are buying. Sources claim that the valuation of the jewelry that has been attached is worth at least a few hundred crore rupees.

As far as UB Engineering is concerned, some assets have been auctioned while others are being left behind.

UB Engineering was one of the first cases referred for liquidation in 2017.

Sources say the marked service tax privileges on the company have been an obstacle to the liquidation. “Before putting anything up for sale, it had to be fixed.

Now that everything is settled, 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 uncontested service tax receivables of Rs 3.33 crore.

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

UB Engineering was previously admitted by the insolvency court for resolution, but was subsequently referred for liquidation.


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