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PNB will pay lenders Rs 60 bn that Nirav Modi owes, but with conditions

Nirav Modi and his uncle Mehul Choksi have allegedly defrauded the PNB and other banks of Rs 127 billion


The Punjab National Bank (PNB) will honour claims by peer banks who issued credit to billionaire jeweller Nirav Modi and his uncle Mehul Choksi against guarantees given by PNB, but the payments come with riders, the Economic Times (ET) reported. PNB, the second-biggest Indian state-run lender, uncovered in January the alleged fraud in which certain bank officials were suspected of colluding with Modi and Choksi to issue fraudulent letters of undertaking (LoUs) for their firms to raise loans from overseas branches of mostly Indian banks. Both Modi and Choksi have denied ...

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First Published: Tue, March 13 2018. 11:33 IST