Sunday, 09 December, 2018

PNB fraud case: ICICI's Chanda Kochhar, Axis Bank's Shikha Sharma summoned

Know Your Employee norms PNB fraud case: ICICI's Chanda Kochhar, Axis Bank's Shikha Sharma summoned
Nellie Chapman | 06 March, 2018, 21:15

Nearly 31 banks are a part of a consortium which had given Rs 5,280 crore working capital facility extended to Choksi's companies of which ICICI Bank is the lead lender.

ICICI Bank alone had given Rs 405 crore loan to Gitanjali Gems.

The two top bankers were only being questioned for clarifications and were not accused in the case, NDTV reported quoting unidentified officials.

Soon after the exposure of the PNB scam, Axis Bank had stated that while it had in the past done transactions against PNBs authenticated letters of undertakings, the private sector lender had since sold down all the referred transactions.

Indian investigators have so far arrested almost 20 people, including some senior executives of companies owned by Modi and Choksi as well as high-ranking officials of the Punjab National Bank, in the bank fraud probe. They were summoned in connection with loans given to Gitanjali Gems owned by Mehul Choksi. Our intention is to get the information from these two banks.

The SFIO also said PNB MD and CEO, Sunil Mehta, has been summoned on Wednesday.

In a letter addressed to the heads of 31 banks, the Enforcement Directorate (ED) has directed them to meet investigating officials about the fraud, people in the know of things told Bloomberg. As per PTI, V Srinivasan, Deputy Managing Director of Axis Bank was seen coming out of the SFIO office in Mumbai on Tuesday.

Meanwhile, the Central Bureau of Investigation (CBI) detained Vipul Chitalia, vice president of Gitanjali Group, as a part of the probe into the case.

Fraud agencies have been going through all the credits and loans extended to Modi, Choksi and their associate companies since the Rs 12,000-crore Punjab National Bank fraud came to light. The official handling the case sought 100 per cent cash guarantee before any such letters could be issued to which the company officials said no such guarantee was sought in the past. "Our presentation to the Gitanjali gathering of organizations isn't the biggest among moneylenders in the consortium", the bank had stated, including that it was "completely co-working with the researching offices in their endeavors". The bank's exposure to these entities is about ₹200 crore, it added.