"We have reported a fraud to the RBI amounting to Rs 86.47 crore in the fund-based working capital facilities extended to Gitanjali Gems Ltd on account of non-realisation of export bills and diversion of funds," said the Mangaluru-based bank in a regulatory filing on the BSE late on Wednesday night.
The scheduled commercial bank, however, clarified it does not have any Letter of Understanding (LoU) exposure in Mehul Choksi's company.
Mehul Choksi and his nephew Nirav Modi are already facing investigation in the Rs 13,540-crore fraud they committed on the state-run Punjab National Bank's Mumbai branch, which came to light after they left the country in early January.
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