The top bankers, Chanda Kochhar of ICICI Bank and Shikha Sharma of Axis Bank were issued summons for loans to Mehul Choksi’s Gitanjali group. Its reported the total advances from over 31 banks are for working capital and are worth over 3,800 crore.
ICICI bank has an exposure of Rs 405 crore.
The summons have been issued by the SFIO (Serious Fraud Investigation Office), the investigating arm of the Corporate Affairs Ministry to probe corporate frauds. It is one of the many central agencies that are probing the bank fraud including the Enforcement Directorate and the Central Beuro of Investigation
20 people have been arrested in bank fraud cases linked Nirav Modi’s companies and to his uncle Mehul Choksi by the CBI over the last one month in case.
Earlier in the day, the CBI arrested Vipul Chitalia, one of the vice presidents of Gitanjali Group of Companies, as a part of its probe.
The Rs 1.2 Billion Dollar fraud was allegedly perpetrated by Nirav Modi and his uncle Mehul Choksi, the promoter of Gitanjali Gems.
It is alleged that the perpetrators got Letters of Undertakings and Letters of Credit (LCs) issued in favour of foreign branches of Indian banks based on fraudulent or non-existent guarantees.