Money & Banking

United Bank names Choksi, Gitanjali Gems as wilful defaulters

PTI Mumbai | Updated on October 03, 2019

Mehul Choksi   -  PAUL NORONHA

State-run United Bank of India on Thursday issued a public notice declaring Gitanjali Gems and its fugitive owner Mehul Choksi as willful defaulters and sent them notices seeking repayment of ₹332 crore dues.

Diamantaires Choksi and his nephew Nirav Modi are the kingpins behind the nation’s biggest banking fraud, came to be known as the PNB scam, in February 2018. They have defrauded the State-run bank of over ₹13,000 crore through the Brady House branch at the tony Horniman Circle area in south Mumbai between 2011 and 2017.

According to the notice, United Bank has declared the company and Choksi as wilful defaulters effective June quarter. The company failed to repay the dues despite several notices issued by it, the bank said. Besides Choksi, his wife, Priti Choksi, and directors of Gitanjali Gems have also been given notices by the bank.

United Bank had sanctioned ₹331.85 crore in credit limit to Choksi’s firm, which was into jewellery manufacturing and export.

The bank had declared the account an NPA in March 2018.

Published on October 03, 2019

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