PNB scam updates: CBI detains Gitanjali Group’s VP Vipul Chitalia for questioning; SFIO summons top bank officials
Vipul Chitalia arrested in connection with the case
Deputy Managing Director Axis Bank V Srinivasan was seen leaving from SFIO office in Mumbai
PNB fraud going on since 2010: CBI tells court
Violation of norms for issuance of Letters of Undertaking (LoUs) to benefit billionaire jeweller Nirav Modi and his uncle Mehul Choksi had been going on since 2010, the CBI told a court in Mumbai on Monday.
The agency, which secured a 12-day remand of four accused arrested on Sunday, explained the modus operandi involved in the alleged Rs 12,636-crore Punjab National Bank (PNB) fraud before the special CBI court.
An LoU would be issued to one of the firms of Modi and Choksi, and after the money was credited to the applicants’ account, a new LoU would be obtained to “adjust” the earlier one, the CBI lawyer said. This had been going on since 2010, the lawyer said, while seeking remand of four accused including Aniyath Shiv Raman Nair, Director of Gitanjali Group of Companies of Choksi.
Chitalia was apprehended from Mumbai airport
The CBI detained Vipul Chitalia, the vice president of Gitanjali Group of Companies, as a part of its probe into the multi-crore Punjab National Bank (PNB) fraud, an official said. Chitalia was apprehended at Mumbai airport and brought to the CBI office at the Bandra-Kurla Complex in Mumbai for questioning, he said, but did not divulge any other details about Chitalia’s alleged role in the PNB fraud.
CBI detains Vipul Chitalia
Vipul Chitalia, vice president (banking operations) of Gitanjali Group, was detained by CBI in Mumbai in connection with the PNB fraud. The agency took him for questioning, reports PTI.
Chanda Kochhar, Shikha Sharma summoned for giving loan to Gitanjali Group: SFIO Mumbai
The SFIO Mumbai confirmed that both Chanda Kochhar and Shikha Sharma have been summoned for giving loan facility to Gitanjali Group. “They have been summoned for giving the loan facility to Gitanjali Group. Our intention is to get the information from these two banks. We would like to question both of them.”
India Today reports that the SFIO has also summoned PNB MD and CEO Sunil Mehta. The SFIO is a fraud investigating agency, which comes under the jurisdiction of the Ministry of Corporate Affairs.
Gitanjali group’s vice-president Vipul Chitalia detained by CBI for questioning
The CBI, earlier, detained Vipul Chitalia, the vice president of Gitanjali Group of Companies, as a part of its probe into the PNB fraud.
Chitalia was apprehended at Mumbai airport and brought to the CBI office at the Bandra-Kurla Complex here for questioning, he said, but did not divulge any other details about Chitalia’s alleged role in the PNB fraud.
Choksi was given capital facility of Rs 5,280 crore by consortium of 31 banks
Both, Kochhar and Sharma, top women bankers in India, have been summoned in a case of Rs 5,280 crore working capital facility given to Mehul Choksi’s Gitanjali Group by a consortium of 31 banks.
The ICICI Bank, with a loan of Rs 405 crore, was a lead banker in this consortium; Axis Bank had a major exposure too.
‘SFIO had issued letters to some banks asking to explain about the working capital facility given to Gitanjali group’
31 banks have been summoned over PNB scam
Officials of State Bank of Jaipur, KarurVysya Bank, among others are expected to be summoned by the CBI.
SFIO summons Chanda Kochhar, Shikha Sharma
According to News18, Serious Fraud Investigation Office (SFIO) has also summoned Kochhar and Shikha Sharma. More details are still awaited.
SFIO has issued summons to several banks
The SFIO has been issuing summons to banks to ascertain the kind of exposure to Nirav modi and Mehul Choksi — how much assets were mortgaged against it, what can be seized and how much loans can be waived off.
Axis bank has exposure to both Nirav modi and Gitanjali. It issued LoUs to both too.
ICICI Bank has exposure to Gitanjali Group, not Nirav Modi firms
Chanda Kochhar-led ICICI Bank had informed that it has no exposure to Nirav Modi group of companies, but have given working capital loans along with a consortium to Gitanjali group, Moneycontrolreported. It has added that no LoUs have been issued to both the companies.
On 27 February, when the CBI had called ICICI Bank’s Executive Director NS Kannan for questioning, the bank had clarified that they “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.”
ICICI Bank, which is the lead banker to Gitanjali Group loans said, “We are working capital lenders to the Gitanjali group of companies along with several other banks in the consortium.”
Kochhar among top bankers who were summoned by CBI
According to reports, apart from Kochhar, Axis Bank’s Shikha Sharma was summoned as well.
SFIO summons Chanda Kochhar for questioning in Gitanjali case
According to ICICI bank sources, bank’s MD and CEO Chandra Kochhar had been summoned by the SFIO, Mumbai.
PNB fraud latest updates: PTI report said that Vipul Chitalia, vice president (banking operations) of Gitanjali Group, was detained by CBI in Mumbai in connection with the PNB fraud. The agency took him for questioning.
Confirming several reports, SFIO Mumbai said that both Chanda Kochhar and Shikha Sharma had been summoned for granting loan facility to Gitanjali group.
According to reports, the Serious Fraud Investigation Office (SFIO) Mumbai has also summoned Axis Bank’s Shikha Sharma for questioning as well. Reports also said that officials from 31 banks are expected to be called in for questioning.
According to reports, the Central Bureau of Investigation had summoned ICICI bank’s CEO Chanda Kochhar for questioning in the Gitanjali jewel loan case. According to sources, Kochhar is in the CBI office right now. Kochhar was called in questioning on Monday and Sunday as well.
Violation of norms for issuance of Letters of Undertaking (LoUs) to benefit billionaire jeweller Nirav Modi and his uncle Mehul Choksi had been going on since 2010, the CBI told a court. The agency, which secured a 12-day remand of four accused arrested on Sunday, explained the modus operandi involved in the alleged Rs 12,636-crore Punjab National Bank (PNB) fraud before the special CBI court in Mumbai.
An LoU would be issued to one of the firms of Modi and Choksi, and after the money was credited to the applicants’ account, a new LoU would be obtained to “adjust” the earlier one, the CBI lawyer said.
This had been going on since 2010, the lawyer said, while seeking remand of four accused including Aniyath Shiv Raman Nair, Director of Gitanjali Group of Companies of Choksi.
Nair had signed various applications to avail the LoU facility, and he was also a director at 19 other companies of Mehul Choksi, the CBI lawyer said.
ICICI Bank MD and CEO Chanda Kochha.
Manish K Bosamiya, then Assistant General Manager (Operation) of Firestar International Pvt Ltd (a Nirav Modi group firm), who was also produced before the CBI court, was responsible for day-to-day credit activities of the company, said the lawyer of the investigating agency.
Bosamiya was the one who was liaisoning with banks, especially PNB, for credit and disbursement, the CBI lawyer told the court.
Bosamiya used to visit the Brady House branch of PNB here, the CBI lawyer said. It is from this branch that the alleged scam started.
Documents for LoUs were submitted on the instructions of Bosamiya, as per the information given by co-accused Arjun Patil (senior executive, Firestar) to the interrogators, the CBI said.
Patil told investigators that he had prepared the documents on Bosamiya’s direction, the CBI lawyer claimed.
Another accused Miten Pandya, who was finance manager at Firestar and was earlier assisting Bosamiya, had taken charge of all the activities which Bosamiya was doing earlier, the CBI said.
However, Bosamiya’s lawyer told the court that he had left the company three years ago and that he was assisting the CBI in its investigation. Bosamiya had visited the CBI office for assisting the probe 8 to 10 times, the lawyer added.
Bosamiya was taken into custody around 11 am yesterday and was produced before the court around 4 pm today, after over 24 hours, he said, alleging that the CBI showed wrong time of the arrest and this was an illegal custody.
Under the law, an accused has to be produced before a court within 24 hours of the arrest.
The lawyer of Sanjay Rambhia, a partner of the firm M/s Sampat and Mehta which was auditing the company since 2001, told the court that his client had pointed out unsecured loans of Rs 5,100 and also brought them to the notice of the Income Tax department.
While sending the four accused to the CBI custody, judge S R Tamboli said there were voluminous documents which needed a probe, and with which the accused were needed to confronted.
More than Rs 6,500 crore were involved in the offence, the judge noted.
In order to find out the nexus (between firms and PNB officials), a fair chance needs to be given to the investigating officer, the judge said, sending all four to the CBI custody till March 17.
Bosamiya, Miten Anil Pandya, Sanjay Rambhia and Aniyath Shiv Raman Nair were arrested yesterday.
It is alleged that Choksi and Modi got LoUs and Foregin Letters of Credit (FLCs) of Rs 12,636 crore issued in favour of foreign branches of Indian banks based on fraudulent claims.
Earlier today, the CBI court remanded six others, arrested in the case last month, in judicial custody till March 19.
Vipul Ambani, President, Finance, the Firestar International; Kavita Mankikar, executive assistant and authorised signatory of three firms of Nirav Modi; Arjun Patil, senior executive, Firestar group, were arrested in the case related to the Modi group firms.
Kapil Khandelwal, CFO, Nakshatra group and Gitanjali group and Niten Shahi, manager, Gitanjali group, were arrested in the case related to Choksi’s firms.
Rajesh Jindal was a senior PNB official.
All the six were produced before judge S R Tamboli after their CBI remand ended today.
Mankikar’s lawyer said in the court that she suffered from diabetes, while Ambani’s lawyer said he suffered from stomach pain and back pain. The judge, while remanding them in judicial custody, said they should be provided necessary medical help!!