ICICI Bank’s CEO Chanda Kochar & Shikha Sharma, MD, Axis Bank Summoned in PNB Scam Case
Vipul Chitalia, the Vice President of Gitanjali Group of Companies, was apprehended at Mumbai airport and brought to CBI office for questioning.
Mumbai, March 6: The Serious Fraud Investigation Office (SFIO) on Tuesday summoned Chanda Kochhar, CEO, ICICI Bank and Shikha Sharma, MD, Axis Bank in connection with the Punjab National Bank (PNB) Fraud case. According to a CNN News 18 report, a total of 31 banks have been summoned in connection with the Nirav Modi-led PNB fraud, which is by far the largest scam in Indian banking system. The report further states that officials of State Bank of Jaipur, KarurVysya Bank are also among others who are expected to be summoned by the Central Bureau of Investigations (CBI).
On February 27, the CBI questioned ICICI Bank Executive Director NS Kanan in connection with the alleged Rs 12,700 crore fraud against PNB by Nirav Modi and Gitanjali Gem’s owner Mehul Choksi. As per a Moneycontrol report, ICICI Bank has no exposure to Nirav Modi group of companies, but have given working capital loans along with a consortium to Gitanjali group.
In its clarification, ICICI Bank said, “We have not issued any Letter of Undertaking (LOU) nor do we have any buyer’s credit exposure against LOUs with respect to the Nirav Modi group of companies as well as the Gitanjali group of companies."
Earlier in the day, Vipul Chitalia, the Vice President of Gitanjali Group of Companies, was apprehended at Mumbai airport and brought to the CBI office at the Bandra-Kurla Complex for questioning.
In its regulatory filing, the PNB said that it had discovered fraudulent and unauthorised transactions totalling $1.77 billion (Rs 11,400 crore) at the Mumbai branch. The fraud was allegedly perpetrated by billionaire jeweller Nirav Modi and his uncle Mehul Choksi, the promoter of Gitanjali Gems.
(The above story first appeared on LatestLY on Mar 06, 2018 12:02 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).