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PNB discloses Rs 942-cr additional exposure in Nirav Modi and Mehul Choksi fraud probe, reveals document

Mumbai: The Punjab National Bank has told police that it has uncovered additional exposure of about Rs 942 crore ($145.2 million) in connection with a massive alleged fraud, according to a court filing seen by Reuters.

In what has been dubbed as the biggest fraud in India’s banking history, PNB, the country’s second-biggest state-run lender, said last month it had been defrauded of about $2 billion or Rs 12,700 crore by two jewellery groups who raised credit from overseas banks based on fraudulent guarantees issued in collusion with rogue PNB staff.

AP image.

AP image.

In a court filing on Tuesday, police said the Gitanjali group of companies controlled by jeweller Mehul Choksi allegedly defrauded PNB of Rs 708 crore ($109 million). PNB had previously pegged its exposure to the Gitanjali companies at Rs 613.8 crore.

The new disclosure takes PNB’s overall exposure in the still unravelling fraud case to well over the $2 billion mark.

A lawyer for Gitanjali group’s head, Mehul Choksi, said he was unaware of the new allegations and declined to comment. Choksi and his nephew Nirav Modi, who is the other main accused in the case, have both denied any wrongdoing.

PNB did not immediately respond to requests for comment.


Updated Date: Mar 13, 2018 18:06 PM

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