PNB Discloses Rs 942 Crore Additional Exposure In Nirav Modi Fraud Probe

The new disclosure takes PNB's overall exposure in the fraud case to well over the $2 billion mark.

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PNB Discloses Rs 942 Crore Additional Exposure In Nirav Modi Fraud Probe

Gitanjali group allegedly defrauded PNB of Rs 7080 crore: Police

Mumbai:  The Punjab National Bank has told the police that it has uncovered additional exposure of about Rs 942 crore ($145.2 million) in connection with the alleged fraud by billionaire jeweler Nirav Modi, according to a court filing seen by Reuters.

In what has been dubbed as the biggest fraud in India's banking history, PNB, the country's second-biggest state-run lender, said last month it had been defrauded of about $2 billion by two jewellery groups who raised credit from overseas banks based on fraudulent guarantees issued in collusion with rogue PNB staff.

In a court filing on Tuesday, police said the Gitanjali group of companies controlled by jeweller Mehul Choksi allegedly defrauded PNB of Rs 7080 crore ($1.09 billion). PNB had previously pegged its exposure to the Gitanjali companies at Rs 6138 crore.

The new disclosure takes PNB's overall exposure in the still unravelling fraud case to well over the $2 billion mark.

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A lawyer for Gitanjali group's head, Mehul Choksi, said he was unaware of the new allegations and declined to comment. Mr Choksi and his nephew Nirav Modi have both denied any wrongdoing.

PNB did not immediately respond to requests for comment.
© Thomson Reuters 2018


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