The Serious Fraud Investigation Office (SFIO) on Tuesday summoned ICICI bank CEO Chanda Kochhar and Axis Bank Managing director Shikha Sharma in connection with loans extended to Mehul Choksi’s Gitanjali Group.
A consortium of 31 banks led by ICICI bank has loaned close to Rs 5,200 crore to Choksi’s Gitanjali Group. Nirav Modi firms Stellar Diamond and Solar Exports and Diamonds have together borrowed close to Rs 4,000 crore from banks. The SFIO also issued letters to select banks, asking them to explain the working capital facility given to Gitanjali Group. The SFIO is said to have asked senior executives from the 31 banks who have done business dealings with the firms promoted by Nirav and Choksi to be present at its office in Mumbai.
In a late night development, SFIO summoned PNB MD and CEO Sunil Mehta for recording of his statement in the Rs 12,700-crore fraud. Mehta is expected to appear before SFIO on Wednesday.
In a related development, mastermind of the PNB fraud and VP of Gitanjali Group of companies Vipul Chitalia was intercepted by the immigration authority at Mumbai airport after he landed from Bangkok. He was handed over to the CBI which produced him before a special court that remanded him in custody till March 17. Meanwhile, Nirav’s company Firestar Diamond International Private ltd moved Delhi High Court against seizure of properties by the ED.
Sources said a team from Axis Bank, led by deputy managing director V Srinivasan and executives from the trade and transactions department, went to the SFIO’s office in Mumbai, after the investigating agency called them to help in the probe, sources said. The officials were in the office for over two hours and are understood to have been asked about their business with firms like Choksi’s Gitanjali Gems and also Nirav, as per sources. Sources indicated that the SFIO may soon summon other banks who are part of the consortium.
The CBI had earlier questioned ICICI bank executive director NS Kanan as part of the investigation in India’s biggest banking fraud.
The Finance Ministry also said on Tuesday it apprised the Prime Minister’s Office (PMO) on March 1 of the action taken with regard to fraudulent issuances of letters of Undertaking (loUs) of PNB fraud case.
Earlier, the agency told the court in Mumbai that Chitalia was the one who put together the fraudulent transactions, along with chairman and managing director of Gitanjali Group, Choksi. The investigating agency had issued a look out circular against him. Meanwhile, the court also remanded Gokulnath Shetty, earlier arrested in connection with the case of Nirav’s firms, in CBI custody till March 15 in connection with the case of Choksi-owned firms.
Bombay Stock Exchange (BSE) has sought clarifications from both banks about the news, but neither had responded.