New Delhi, March 21: After the Punjab National Bank (PNB) stunned India’s financial sector in the last month, another similar incident in Tamil Nadu came to light on Wednesday.  Jewellery chain Kanishk Gold Pvt Ltd has been named in defrauding 14 banks including PNB and India’s largest lender – the State Bank of India (SBI) with an amount as close to as Rs 824 crore.

According to a TOI report, the SBI, in January had requested the help of the CBI to investigate jewellery chain Kanishk Pvt Ltd in connection with the loan fraud. In a letter dated January 25, 2018 to the CBI, SBI charged Kanishk with "manipulating records, shutting shop overnight”. TOI reported.  It must be noted that the principal loan is about Rs 824 crore and adding the interest due would indicate a loss of more than Rs 1,000 crore to the banks.

SBI was reportedly the first bank to declare the account fraudulent to the RBI on November 11, 2017. By January, all other members had declared the account as fraudulent to the regulator. Kanish has a registered office in T Nagar in Chennai and is owned by promoters and directors Bhoopesh Kumar Jain and his wife Neeta Jain.  As per details by the bankers, the couple could is believed to be residing in Mauritius and were unable to contact. The CBI is yet to file an FIR in this regard.

SBI was the lead bank in a consortium of 14 banks. The banks include both - private and public-sector banks who have given loans to Kanishk.  According to the SBI, the jewellery chain defaulted first time in March 2017 in interest payment to eight banks and by April 2017, it completely stopped paying to all the 14 banks.  Later on May 25 2017, the bankers visited Kanishk's corporate office, factory and showroom but the facilities were shut with no stock.

The report, while informing about the loan to each of the banks, it said the State Bank of India extended loans to the tune of Rs 215 crore, Punjab National Bank Rs 115 crore, Union Bank of India Rs 50 crore, Syndicate Bank Rs 50 crore, Bank of India Rs 45 crore, IDBI Bank Rs 45 crore, UCO Bank Rs 40 crore Tamilnad Mercantile Bank Rs 37 crore, Andhra Bank Rs 30 crore, Bank of Baroda Rs 30 crore, HDFC Bank Rs 25 crore, ICICI Bank Rs 25 crore, Central Bank of India Rs 20 crore and Corporation Bank Rs 20 crore.

(The above story first appeared on LatestLY on Mar 21, 2018 06:16 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).