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PNB discloses additional exposure of Rs 942 crore in Nirav Modi fraud probe

Hindustan Times logo Hindustan Times 13-03-2018
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Punjab National Bank has told police that it has uncovered additional exposure of about Rs 942 crore ($145.2 million) in connection with the Nirav Modi fraud case, 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 by two jewellery groups who raised credit from overseas banks based on fraudulent guarantees issued in collusion with rogue PNB staff.

Full coverage of the PNB fraud case

In a court filing on Tuesday, police said the Gitanjali group of companies controlled by jeweller Mehul Choksi allegedly defrauded PNB of Rs 70.8 billion ($1.09 billion). PNB had previously pegged its exposure to the Gitanjali companies at Rs 61.38 billion.

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.

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