Published
Mar 1, 2018
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PNB: additional 1,300 crore fraud is Gitanjali

Published
Mar 1, 2018

After the Punjab National Bank (PNB) announced that the total in the ongoing fraud case was actually greater than the initial estimate, the bank has clarified that this extra money is attributed to Mehul Choksi’s Gitanjali.

The PNB have attributed an additional 1,300 crore fraud to Gitanjali - Gitanjali- Facebook


On March 1, the PNB announced that the extra 1,300 crore rupees (approximately 195 million US dollars) that has been added to the fraud total is attributable to Nirav Modi’s uncle Mehul Choksi and his Gitanjali group of jewellery businesses. The PNB also notified various stock exchanges that the latest fraud detected was on March 2, 2017 and that the total may be greater than first expected.

The PNB have now clarified that the total fraud attributed by the bank to Mehul Choksi’s Gitanjali Group is 6,186.72 crore rupees (approximately 929.9 million US dollars). The remainder of the new total of 12,600 crore rupees (1.89 billion US dollars) is attributed to Nirav Modi and his diamond business.

The PNB said in a statement on Thursday: "[the] Issuance of FLC (Foreign Letters of Credit) is a contingent liability and may fall upon Bank in case of non-payment by opener of FLC. However we have adequate assets/capital to meet any liability which may be crystallised on us as per law of land."

The case is still being investigated by the Central Bureau of Investigation (CBI).

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