SFIO summons banking leaders

Axis Bank: The private sector lender said its exposure to Nirav Modi, Gitanjali Gems at about Rs 200 crore.

Quoting sources, media agency ANI said the SFIO had issued letters to some banks asking to explain about the working capital facility given to Gitanjali group. Now, the SFIO has approached other lenders which have exposure to the firms promoted by Nirav Modi and Mehul Choksi.

Prior, a senior authority of the ICICI Bank was summoned to the CBI office in Mumbai.

Sources said a number of banks have already submitted documents with the agency. Meanwhile, the ICICI Bank has said its exposure to the Gitanjali Group is not the largest among the consortium lenders. The bank added that the summons from SFIO was in connection with information sought on Nirav and Gitanjali Groups.

In a related development, mastermind of the PNB fraud and VP of Gitanjali Group of companies Vipul Chitalia was intercepted by the immigration authority at Mumbai airport after he landed from Bangkok.

The Rs 12,636-crore fraud was allegedly perpetrated by billionaire jeweller Nirav Modi and his uncle Mehul Choksi, the promoter of Gitanjali Gems. The court, set up under the Prevention of Money Laundering Act (PMLA), issued the NBWs on applications filed by the Enforcement Directorate (ED), one of the agencies probing the bank fraud cases registered last month. He has been taken for questioning at the Bandra-Kurla Complex, an official said.

Axis Bank clarified that it was not the leading bank in the consortium.

The officials of PNB scam were sent through an global messaging system for banking called SWIFT.

And, there is a LoU is guarantee that is given issuing a bank to the Indian banks with branches in the foreign to grant short-term credit to the applicant. These amounts are then credited to the LoU issuing bank's Nostro accounts.

Arunachal Pradesh Youth Congress (APYC) today staged dharna and protest in front of Punjab National Bank (PNB) branch at Ganga demanding arrest of all accused involved in the multi crore fraud which is ruining the several banks of the country.

  • Jon Douglas