PNB fraud: Another loan worth Rs 5,280 crore not repaid by Gitanjali to 31 banks
Days after the PNB fraud worth over Rs 11,400 crore involving diamond merchants Nirav Modi and Mehul Chokshi came to light, another unpaid loan worth Rs 5,280 crore has cropped up against Choksi's Gitanjali Group.
During the searches at Gitanjali Group, investigative agencies have seized crucial documents, including an agreement between Gitanjali and a consortium of 31 banks. The exclusive details, shared with India Today, mentions the 31-bank consortium sanctioned a 'working capital facility' of Rs 5,280 crore to the Gitanjali Group, which has not been repaid till now. The loan was cleared in October 2016, and the agreement was revised in October 2017. The document shows the Mehul Choksi firm has utilised the 'working capital facility'.
"If the whole limit has been availed by the group, it is additional loan which has been advanced by the banks to the group. If it has not been repaid, which is most likely the case, it is going to be difficult for bank to recover this (loan amount)," a source from an investigative agency told India Today.
As per the agreement, ICICI Bank was the "lead bank" in the consortium, which sanctioned the 'capital facility' to Gitanjali Group. The IDBI Trusteeship Services Limited was the "security trustee" to the agreement. A detailed questionnaire related to the so called 'capital facility' has been sent to ICICI Bank, which remains unanswered so far.
The PNB has offered the highest loan amount of Rs 587 crore to the company, while ICICI, which is the lead bank in the consortium, has given Rs 405 crore. Corporation Bank has offered Rs 297 crore; Bank of Baroda Rs 265 crore; Central Bank of India Rs 206 crore; and Syndicate Bank Rs 231 crore among others.
Agency sources say it'll be "very difficult" for these 31 banks to recover the additional Rs 5,280-crore loan offered to Gitanjali.
A complete list of 31 banks that offered loans to Gitanjali Group in 2016.
- PNB: Rs 587 crore
- ICICI: Rs 405 crore
- Corporation Bank: Rs 297 crore
- BOB: Rs 265 crore
- CBI: Rs 206 crore
- Syndicate Bank: Rs 231 crore
- Canara Bank: Rs 195 crore
- IOB: Rs 176 crore
- BOI: Rs 173 crore
- SBH: Rs 140 crore
- Dena Bank: Rs 121 crore
- J& K Bank: Rs 121 crore
- OBC: Rs 121 crore
- UBI: Rs 121 crore
- EXIM Bank: Rs 109 crore
- IDBI Bank: Rs 99 crore
- Karnataka Bank: Rs 87 crore
- SBBJ: Rs 87 crore
- SBI: Rs 52 crore
- Vijaya Bank: Rs 63 crore
- Indusind: Rs 58 crore
- Karur Vysya: Rs 30 crore
- Lakshmi Vilas: Rs 30 crore
- Bank of Maharashtra: Rs 24 crore
- Allahabad Bank: Rs 419 crore
- Andhra Bank: Rs 240 crore
- United Bank: Rs 207 crore
- Standard Chartered Bank: Rs 100 crore
- Sbm Bank Mauritius Limited: Rs 75 crore
- Catholic Syrian Bank: Rs 50 crore
- Punjab And Sind Bank: Rs 29 crore
Also read: Nirav Modi, Mehul Choksi planned escape in November
