India's biggest lender the State of India, which has an exposure of Rs 1,360 crore in the Punjab National Bank (PNB), will settle the issue of Letter of Understandings (LoUs) at the heart of Nirav Modi case amicably.
India’s biggest lender the State of India, which has an exposure of Rs 1,360 crore in the Punjab National Bank (PNB), will settle the issue of Letter of Understandings (LoUs) at the heart of Nirav Modi case amicably, its chief Rajnish Kumar was quoted as saying by ET Now, which cited an agency report.
Other banks like Union Bank of India, UCO Bank and Allahabad Bank also have exposure in the LoUs Rs 11,345 crore fraudulently obtained allegedly by diamond czar Nirav Modi by colluding with a former PNB bank official. The Union Bank of India claimed to have an exposure of Rs 1935.45 crore, while UCO bank claimed to have an exposure of Rs 2656.8 crore.
Together, Union Bank of India, Axis Bank and Allahabad Bank can take a hit of Rs 17,632 crore. In an interview with The Times of India, Rajnish Kumar, however, clarified that the bank’s exposure is not in Nirav Modi but in the PNB and some in Gitanjali.
The PNB fraud came to light on February 14 when the bank informed the Bombay Stock Exchange about the case. So far, a multi-agency probe has been launched against Nirav Modi, his wife, brother and close aide
Mehul Choksi. Nirav Modi is reported to have left the country early January, while the fraud is said to have been detected in the third week of January.
The Central Bureau of Investigation (CBI) booked Nirav Modi and others in the January end. The government has suspended their passports and diffusion notices have also been issued by the Interpol. Nirav Modi’s firms namely Stellar Diamonds, Solar Exports and Diamond R US and four others including Nirav Modi and Mehul Choksi obtained fake LoUs from the bank.
The Enforcement Directorate (ED) and CBI have raided over 65 21 locations of the firms related to Nirav Modi and Gitanjali and claimed to have seized gold, diamonds and jewellery worth Rs 5,670 crore. The CBI has also arrested several banks officials for their alleged involvement in the case.