The aftermath of Punjab National Bank scam is haunting the other bankers in the form of summons. In a recent development, ICICI bank MD and CEO Chanda Kochhar and Axis Bank chief Shikha Sharma were summoned by SFIO (Serious Fraud Investigation Office) on Tuesday in the INR 13,000 crore PNB scam case.
Kochhar and Sharma have been asked to be present at the SFIO’s Mumbai office. These top bankers have been issued summons over the Rs 3,280 crore working capital loan to Mehul Choksi’s Gitanjali group. There are 31 banks issued loans to Choksi, among which ICICI has sanctioned a loan of Rs. 405 crore. The SFIO has summoned ICICI Bank Chief Chanda Kochhar and Axis Bank’s Shikha Sharma for interrogation in connection with the big bank scam.
Before this, CBI has detained Vipul Chitalia, the Vice President of Gitanjali Group of Companies, as a part of its probe into the PBN scam.
Chitalia was brought to the Central Bureau of Investigation office at the Bandra-Kurla Complex for interrogation. He was apprehended at Mumbai airport. The other details about Chitalia’s alleged role in the PNB fraud were not revealed.
The 12,636-crore PNB scam was allegedly perpetrated by billionaire jeweler Nirav Modi and his uncle Mehul Choksi, the promoter of Gitanjali Gems.
Choksi is facing allegations for getting letters with Nirav Modi Letters of Undertakings (LoUs) and Foreign Letters of Credit (FLCs) of Rs 12,636-crore issued in favor of the foreign branches of Indian banks based on the fraud claims on both.
The officials of PNB scam were sent through an international messaging system for banking called SWIFT. This manages to pass the instructions among the banks worldwide transfer funds.
And, there is a LoU is guarantee that is given issuing a bank to the Indian banks with branches in the foreign to grant short-term credit to the applicant. But, in case of a default, the bank that has issued the LoU has to pay the liability to the credit giving bank along with the accruing the interest.
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