PNB fraud: Gitanjali Gems stock falls to fresh 52-week low

The Gitanjali Gems stock resumed its decline in morning trade after the Central Bureau of Investigation (CBI) said the Rs 12,600 crore Punjab National Bank (PNB) fraud was in progress since 2010. At 10:49 am, the Gitanjali Gems stock was trading 4.92% or 0.95 points lower to 18.35 level on BSE. The stock hit its fresh 52 week low of 18.35 level in trade today.

The stock is down 75 percent since February 14, the day PNB fraud came to light .  

On Monday, the central investigating agency said the violation of norms for issuance of Letters of Undertakings (LoUs) to benefit billionaire jeweller Nirav Modi and his uncle Mehul Choksi had been going on since 2010.

The stock is down for the 14th straight session. On the NSE, the stock fell 4.94% to 18.30 level.

CBI, which secured a 12-day remand of four accused arrested yesterday, explained the modus operandi involved in the alleged Rs 12,636-crore PNB fraud before the special CBI court here.

An LoU would be issued to one of the firms of Modi and Choksi, and after the money was credited to the applicants' account, a new LoU would be obtained to "adjust" the earlier one, the CBI lawyer said.

This had been going on since 2010, the lawyer said, while seeking remand of four accused including Aniyath Shiv Raman Nair, Director of Gitanjali Group of Companies of Choksi.

It is alleged that Choksi and Modi got LoUs and Foreign Letters of Credit (FLCs) of Rs 12,636 crore issued in favour of foreign branches of Indian banks based on fraudulent claims.