Indian lawmakers want PM to speak on alleged $2bn bank fraud

PNB Scam CBI detains Gitanjali Group's Vipul Chitalia at Mumbai Airport

PNB Scam CBI detains Gitanjali Group's Vipul Chitalia at Mumbai Airport

ICICI Bank and Axis Bank are a part of the 31-bank consortium that had extended a working capital of Rs 5,280 crore to Choksi's Gitanjali Gems and ICICI Bank is the lead lender. ICICI Bank said that it has exposure in Gitanjali Gems, however it denied having any exposure in the PNB-Nirav Modi fraud case.

It has also been learned that PNB MD and CEO Sunil Mehta have been summoned by the SFIO. These summons have been issued in connection to loans granted to Gitanjali Group.

India's biggest-ever bank fraud of 1.8 billion USA dollars is getting murkier with each passing day.

The SFIO's Mumbai head confirmed to India Today that both Chanda Kochhar and Shikha Sharma have been summoned.

ICICI Bank had earlier claimed it did not have any exposure to Nirav Modi group of companies but the bank was only lending working capital to the group along with several other banks.

According to court filings, the exposure to three companies controlled by Modi has been estimated at Rs6,498 crore ($999 million), while firms controlled by Choksi have been accused of defrauding the bank of Rs6,138 crore.

Meanwhile, the CBI has detained Vipul Chitalia, the Vice President of Gitanjali Group of Companies as a part of the probe into the case. 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.

Both Modi and Choksi are alleged to have frauded Punjab National Bank with Rs 12,600 crore. The investigators will start with state-run PNB on Wednesday and will subsequently cover the other lenders, the people said, asking not to be identified as the details are private. The scam unearthed at PNB's branch in Mumbai allegedly involved diamond merchant Nirav Modi and various officials from his company colluding with senior bank officials to issue LoUs without proper checks and securities.

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