Shares of Gitanjali Gems cracked another 5 per cent in morning trade on the bourses today after the CBI made four arrests in connection with the alleged Rs 12,636-crore fraud at Punjab National Bank (PNB) perpetrated by billionaire jewellers Nirav Modi and his uncle Mehul Choksi. The agency has also arrested two employees and an auditor of the Nirav Modi group of companies, while a director of the Gitanjali group of companies (owned by Choksi) has also been taken into custody. Reacting to the development, shares of Gitanjali Gems slumped 5 per cent, to hit its 52-week low of Rs 19.30. This is the 13th straight session of fall for the stock.
It has lost as as much as 70 per cent since February 14, the day the PNB fraud came to light. On the NSE, the stock fell to a 52-week low of Rs 19.25. The CBI has also arrested the then director of Mehul Choksi's company Gili India, Aniyath Shiv Raman Nair, in connection with the case. Besides being one of the directors of the Gitanjali group of companies, he was the authorised signatory for the applications submitted to PNB for issuance of purported Letters of Understanding (LOUs) and Foreign Letters of Credit (FLCs), CBI said. It is alleged that Choksi and Modi got issued LoUs and FLCs of Rs 12,636 crore in favour of foreign branches of Indian banks based on fraudulent claims.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)
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