Oriental Bank reveals Rs 289 crore loan exposure to Nirav Modi, Mehul Choksi
today Sep 12, 2019
Oriental Bank has revealed that it has a Rs 289 crore ($43.44 million) loan exposure to companies owned by accused jewellers Nirav Modi and Mehul Choksi.
The public sector bank, the Oriental Bank of Commerce, has announced that it was also involved in the Punjab National Bank fraud case for the first time, Indo-Asian News Service reported. The announcement has come ahead of the bank’s merger with the Punjab National Bank which was one of the main banks involved in the fraud scandal involving Modi and Choksi.
The bank has issued notices naming Modi and Choksi as “wilful defaulters” on a number of loans totalling Rs 289 crore. The business named its Large Corporate Branch on Cuffe Parade in Mumbai as the branch where the fraud took place.
The bank said that Modi’s businesses Firestar International Pvt. Ltd. and Fire Star Diamond International Pvt. Ltd. failed to repay loans of Rs 60.41 crore and Rs 32.25 crore. The bank also said that Choksi’s companies Gitanjali Gems Ltd. and Nakashatra World Ltd. failed to repay loans totalling Rs 136.45 crore and Rs 59.53 crore. The bank warned others from entering into any deals with the two accused jewellers.
Modi is currently being held in Wandsworth jail in the UK as he awaits the start of his extradition hearing. Choksi is believed to be residing in Antigua where he has taken citizenship and Indian authorities are working to begin extradition negotiations.
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