PNB Scam: CBI files supplementary chargesheet against Mehul Choksi, Gitanjali group

Graphic Naveen Kumar Saini  Mint

Graphic Naveen Kumar Saini Mint

In connection with the pleas filed on the Gitanjali Gems in the court, the ED said, "The Company cleverly veils any reference to Mehul Choksi, who left India in the twilight of the scam coming to the notice of the law enforcement agencies". "Nirav Modi has cheated the bank of about Rs 6490.2 crore", said a CBI official.

Police on Monday charged 22 people, including a former head of PNB and two of its current executive directors.

The state-owned Punjab National Bank (PNB) on Tuesday reported a net loss of Rs 13.416.91 crore in the fourth-quarter ending March FY18, as bad loans surged.

Some analysts expressed concern that the size of the losses, coupled with surging bad debts across the Indian banking sector, might weaken PNB's capital reserves to the extent it could damage the bank's growth prospects.

The filing further said that the bank has made higher than required provisions amounting to Rs 7,178.42 crore.

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Chargesheet mentions that 12 transactions has been done worth around 512 crores.

Total provisions other than tax also increased to Rs 20,353.10 crore as against Rs 5,753.51 crore in the same quarter of the previous fiscal.

"After including outstanding amounts under other credit facilities to the above entities, the amount involved now works out to be Rs 14,356.84 crore", PNB said. Even on operating profit basis, the bank had loss of Rs 447.38 crore in the quarter as against Rs 6,231.79 crore profit in the year-ago period. Out of this, the much talked about Nirav Modi scam accounted for about Rs 7580 crore, meaning the bank's lending moves left a lot to be desired. Consequently the government share holding rose is 62.25 per cent on March 31, 2018 from to 57.04 per cent before preferential allotment.

During the fourth quarter, the bank posted a net loss of Rs 13,417 crore.

"The bank plans to rely on artificial intelligence (AI) for reconciliation of accounts and incorporate analytics for improving audit systems. Mr. Shetty obtained quotes by Debajyoti Dutta, proprietor of Rishika Financials for Mr. Choksi's companies for the issuance of LoU by PNB out of which Mr. Shetty compelled Mr. Dutta to part with an aggregate sum of ₹1,02,53,664 as illegal gratification by way of cheques for himself and his family by threatening Mr. Dutta of stopping his business".

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