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All you need to know about the fresh CBI probe into Mehul Choksi loan fraud

Loan fraud by a group of companies belonging to Mehul Choksi came to light when the CBI registered an FIR on February 15 in the PNB fraud case

Somesh Jha  |  New Delhi 

Mehul Choksi
Mehul Choksi

During the course of its investigation in the Rs 139 billion Punjab National Bank fraud, the Central Bureau of Investigation (CBI) found one of the prime accused, had taken a loan worth Rs 52.8 billion from a consortium of banks and that is still unpaid.

The is examining the irregularities in the loan extended by the consortium and it has already probed executive director N S Kannan in February. The has not registered a separate FIR in the Rs 52.8 billion loans taken by a group of belonging to Choksi as it will be a part of the existing investigation into the

The Gitanjali group, owned by Choksi, had taken a 'working capital facility' loan worth Rs 52.8 billion from a consortium of 31 public and private sector banks, led by ICICI Bank, in October 2016.

As per a report in Business Today, Punjab National Bank had the highest exposure of Rs 5.9 billion amongst the lenders, followed by Allahabad Bank (Rs 4.2 billion), (Rs 4 billion) and Corporation Bank (around Rs 3 billion). Other banks included Central Bank of India, Bank of Baroda, Dena Bank and IDBI Bank. firms have utilised the 'working capital facility', according to reports.

“We are working capital lenders to the of along with several other banks in the consortium. Our exposure to the of (owned by Mehul Choksi) is not the largest among lenders in the consortium. We are fully co-operating with the investigating agencies in their efforts,” had said in a statement in February.

In February, had appointed Delhi-based audit firm TR Chada to conduct a forensic audit of the loans taken by Choksi group of to assess if there was round-tripping of funds by the jeweller through remittances of money overseas without an actual exchange of goods, as per a report in Economic Times.

Loan fraud by a group of belonging to came to light when the registered an FIR on February 15 in the PNB fraud case. Choksi firms had taken fraudulent letters of undertaking from Punjab National Bank to take loans worth Rs 71 billion.

First Published: Thu, April 12 2018. 12:20 IST