PNB loan fraud: Oriental Bank declares Nirav Modi, uncle Mehul Choksi wilful defaulters; reveals loan exposure to diamantaires

  • Oriental Bank revealed that Modi and Choksi jointly owe the bank to the tune of about Rs 290 crore

  • Modi and Choksi are facing extradition cases in England and Antigua respectively

  • The revelation comes just a couple of days after PNB board gave its in-principle approval for the merger with OBC

In yet another setback for fugitive diamantaires Nirav Modi and his uncle Mehul Choksi, state-run Oriental Bank of Commerce (OBC) has declared the duo as wilful defaulters.

The public sector bank (PSB) also revealed for the first time that it has a combined loan exposure to the duo to the tune of about Rs 290 crore, said media reports.

Modi and Choksi are facing extradition cases in England and Antigua respectively. The duo fled India after the expose of $2 billion Punjab National Bank (PNB) fraud and money laundering case last year.

 PNB loan fraud: Oriental Bank declares Nirav Modi, uncle Mehul Choksi wilful defaulters; reveals loan exposure to diamantaires

File photos of Nirav Modi (left) and Mehul Choksi. Pic courtesy: YouTube

The revelation on the fugitives loan exposure to the bank comes just a couple of days after the PNB board had decided to give its "in-principle approval" for the merger with OBC, said a report in The Economic Times.

Modi's companies Firestar International and Fire Star Diamond International did not repay OBC's loans of Rs 60.41 crore and Rs 32.25 crore, respectively. Choksi's firms namely Gitanjali Gems and Nakashatra World reportedly owe Rs 136.45 crore and Rs 59.53 crore, respectively to the PSB, reported IANS.

Modi has been lodged at Wandsworth prison in south-west London since his arrest in March this year on an extradition warrant executed by Scotland Yard.

Choksi is at present based in the Caribbean nation of Antigua. India has sought his extradition from that country and an Interpol arrest warrant has also been issued against him.

In July this year, the Enforcement Directorate (ED) had attached assets worth Rs 24.77 crore in India and abroad of Choksi.

Last month, the Central Bureau of Investigation (CBI) had sought permission of a court in Mumbai to attach the properties of Modi, his brother Nishal and another accused in the PNB scam.

With inputs from agencies

Updated Date: Sep 07, 2019 12:45:56 IST