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Scam-hit PNB asks Gitanjali group companies to pay Rs 10.45 billion

Gitanjali Gems also released resignation letter of Independent Director S Krishnan

Press Trust of India  |  New Delhi 

Gitanjali gems
Photo: Kamlesh Pednekar

"in view of fraudulent activities" has asked Gitanjali Group companies to pay "outstanding" dues amounting to Rs 10.4588 billion, the jewellery firm said in a regulatory filing.

also released resignation letter of Independent Director S Krishnan.

The firm, a key entity involved in Rs 114 billion scam at PNB, said this in reply to clarifications sought by the stock exchanges.

The company has annexed four letters written by to Gitanjali Gems, India, Asmi Jewellery India and Brands on February 8.

Through the letters, has informed these companies that "in view of fraudulent activities by the group companies Gitanjali Gems, Brands and India, it has been decided by the bank to recall facilities being enjoyed by the company with our bank with immediate effect".

The scam-hit state-owned bank had asked the four group companies to pay the "outstanding dues" amounting to Rs 1045.88 crore "within days".

has demanded Rs 6.4512 billion from Gitanjali Gems, Rs 1.8752 billion from India, Rs 1.1 billion from Brands, and Rs 1.0324 billion from Asmi Jewellery.

Investigating agencies, including Enforcement Directorate, Central Bureau of Investigation and Income Tax Department, has launched probe into the alleged fraud.

promoter Mehul Choksi along with main accused diamantaire have reportedly fled the country. The government has suspended their passports.

First Published: Tue, February 20 2018. 00:17 IST