Karnataka Bank on Wednesday accused Gitanjali Gems of defrauding it of Rs 86.4 crore. In February, the Punjab National Bank had said jewellers Nirav Modi and his uncle Mehul Choksi, who is a promoter of Gitanjali Gems, cheated it of around Rs 13,000 crore.
In its Bombay Stock Exchange filing, Karnataka Bank said, “The bank has reported a fraud to the Reserve Bank of India amounting to Rs 86.47 crore in the fund based working capital facilities extended to Gitanjali Gems Limited on account of non-realization of exports bills and diversion of funds.”
Karnataka Bank clarified, that unlike Punjab National Bank, it had provided the company a loan under a consortium agreement and not via a letter of undertaking.
Choksi and Modi left India in early January, before Punjab National Bank revealed the scam. Choksi, however, had told the Central Bureau of Investigation that the Punjab National Bank scam charges against him were exaggerated and expressed fear about his safety, ANI reported. In a letter, Choksi had said that he was “extremely held up” with business abroad and would not be able to travel to India. Choksi also claimed that his passport had been suspended.