Gitanjali group's vp held, sfio calls top bankers

PNB scam: Gitanjali Group's VP held, SFIO calls top bankers; 10 highlights

ICICI Bank Managing Director and Chief Executive Officer Chanda Kochhar and her Axis Bank counterpart Shikha Sharma were on Tuesday summoned by the Serious Fraud Investigation Office (SFIO) in connection with the Rs 127-billion Punjab National Bank (PNB) fraud involving absconding diamantaire Nirav Modi and his uncle Mehul Choksi.

Here are the top 10 developments in the massive PNB banking fraud involving Nirav Modi: 1) Nirav Modi's firm moves Delhi HC against seizure of his propertiesDiamantaire Nirav Modi-owned Firestar Diamond International on Tuesday moved to the Delhi High court against the seizure of his properties by the Enforcement Directorate (ED) in connection with the Punjab National Bank (PNB) fraud case.

Firestar Diamond International has sought to quash of the order passed by the ED for the seizure of movable property.

It also challenged the provisions of the Prevention of Money Laundering Act (PMLA) that allow the ED to conduct search and seizure of property.

2) PMO apprised of action taken in PNB scam on Mar 1: FinMin The finance ministry said it apprised the Prime Minister's Office (PMO) on March 1 of the action taken with regard to fraudulent issuances of Letters of Undertaking (LoUs) of Punjab National Bank leading to a fraud of Rs 12,646 crore.

In written replies to a host of questions regarding the alleged fraud by jewellery designer Nirav Modi and his uncle Mehul Choksi, the ministry informed the Rajya Sabha that the Central Bureau of Investigation (CBI) has registered two cases in the matter and so far has arrested 18 persons.

3) ICICI's Chanda Kochhar, Axis Bank's Shikha Sharma quizzed by SFIO: Heads and top officials of other banks have been hit by the massive Rs 127-billion fraud, too. The Serious Fraud Investigation Office (SFIO) summoned ICICI Bank chief Chanda Kochhar and Axis Bank's Shikha Sharma in the PNB bank fraud case involving Nirav Modi and his partner and uncle Mehul Choksi.

Sources in the agency said that Kochhar and Sharma would appear before the SFIO in Mumbai on Tuesday afternoon. They added that the two top bank officials were summoned for giving loan facility to Gitanjali Group and that they would be questioned.Last year, ICICI Bank reportedly extended a loan of Rs 10 billion and Axis Bank Rs 7 billion to Gitanjali Gems.According to another source, officials of India's largest lender, the State Bank of India, have been called for questioning.

SFIO seeks an explanation from banks: On Tuesday, the SFIO issued letters to select banks, asking them to explain the working capital facility given to Gitanjali Group.

According to sources, a consortium of 31 banks had given working capital facility to Gitanjali Group. Earlier, the agency had summoned Punjab National Bank, and now it has issued letters to some more banks.The SFIO is said to have asked senior executives from the 31 banks who have done business dealings with the firms promoted by Modi and Choksi to be present at its office in the financial capital, according to sources.News agency ANI reported that Axis Bank Deputy Managing Director V Srinivasan was seen leaving the SFIO office in Mumbai on Tuesday afternoon.

ARTICLE SOURCE- BUSINESS STANDARD.