CBI registers yet another FIR; this time names Gitanjali Gems as well
Pacing up its action against fraudulent deals in Punjab National Bank, Mumbai Branch, the Central Bureau of Investigation has registered a second FIR in the case pertaining to letters of undertaking worth Rs 4,887 crore issued to Mehul Choksi’s Gitanjali Group.
The central probe agency also carried out searches at 20 locations across six cities on Friday.
It need be mentioned that CBI has named three companies of Choksi — Gitanjali Gems, Gili India and Nakshatra Brand Ltd — have been named in the FIR.
The CBI’s searches were being conducted in Maharashtra’s Mumbai and Pune, Gujarat’s Surat, Rajasthan’s Jaipur, Telangana’s Hyderabad and Tamil Nadu’s Coimbatore.
Letters of undertaking (LoUs) are issued by banks giving guarantee on behalf of a company. Other lenders then give credit based on the LoU.
The PNB, India’s second-largest state-owned lender, revealed on Wednesday it had detected fraud of Rs 11,400 crore at a branch in Mumbai.
The companies that received the credit mainly had ties to jeweller Nirav Modi and his maternal uncle, Choksi, managing director of Gitanjali Gems, according to the Punjab National Bank. >