The accounts of Gitanjali Gems and Mehul Choksi’s group of companies, which are currently embroiled in the biggest fraud scandal in India’s banking history, have forced up Non-performing Assets (NPAs) this past quarter.
Karnataka Bank Ltd informed the RBI that, although not exposed to any letters of undertaking (LoU), it was defrauded to the tune of 86.5 crore rupees (approximately 13 million US dollars) by Gitanjali Gems.
As the investigation into Nirav Modi and Mehul Choksi's accused fraud at the Punjab National Bank (PNB) continues, investigations have uncovered some of the pair’s business practices for moving money around.
The Central Bureau of Investigation (CBI) has been allowed to invoke Section 409 of the Indian Penal Code which would put the jewellery tycoon Mehul Choksi’s maximum sentence at life if found guilty of fraud.
PNB has filed a new complaint against Nirav Modi, the diamond tycoon it has accused of being part of a near $2 billion fraud, alleging that companies he controlled had misused even legitimate loans and guarantees.
An official of India's Punjab National Bank received gold and diamond jewellery from a billionaire jeweller accused of being involved in a $2 billion bank fraud, the federal police told a court on Saturday.
The Central Bureau of Investigations (CBI) has made four more arrests in the $2 billion fraud case involving state lender PNB, widening the investigation of the biggest banking fraud in the country’s history.