Choksi, Gitanjali, Nakshatra - all accused in CBI chargesheet

Marco Green
May 17, 2018

In a document dated May 10, Kartik Radia, Partner & Head - Business Advisory Services at BDO, declared that the three companies Firestar Diamond Inc, A. Jaffe Inc and Fantasy Inc that have filed for bankruptcy in NY received at least around $46 million (Rs 312.4 crore) in remittances from PNB since 2011, the time when Modi's fraudulent activities are believed to have commenced.

PNB erased almost half of its value since 14 February after the bank disclosed that it detected a scam where billionaire jeweller Nirav Modi allegedly acquired fraudulent letters of undertaking from a branch in Mumbai to secure overseas credit from other Indian lenders.

Modi and his associates defrauded these banks of ₹130 billion ($1.92 billion) between 2011 and 2017- India's biggest banking fraud. Currently, the probe agencies are investigating in the matter and also have seized many properties of Nirav Modi and Mehul Choksi.

PNB's share has dropped from a level of Rs 194 crore in January-end before the scam was revealed to a level of Rs 83.85 on Tuesday end of trade after tanking 6% post the announcement of its quarterly results.

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In connection with the pleas filed on the Gitanjali Gems in the court, the ED said, "The Company cleverly veils any reference to Mehul Choksi, who left India in the twilight of the scam coming to the notice of the law enforcement agencies".

The PSU lender said it made provisions and contingencies worth Rs 20353.10 crore for the quarter ended March. As of March 2018, PNB holds 32.96% stake in PNB Housing.

Besides, the housing finance firm's Net Interest Income (NII) registered a growth of 36 per cent to Rs 451.8 crore from Rs 332.7 crore. And now, it's led to the highest quarterly loss ever by an Indian bank. "Mr. Shetty obtained quotes by Debajyoti Dutta, proprietor of Rishika Financials for Mr. Choksi's companies for the issuance of LoU by PNB out of which Mr. Shetty compelled Mr. Dutta to part with an aggregate sum of ₹1,02,53,664 as illegal gratification by way of cheques for himself and his family by threatening Mr. Dutta of stopping his business".

The statement further said several steps are in the pipeline or have already been initiated by the bank to reduce dependence on human intervention.

Other reports by Click Lancashire

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