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CBI files second charge sheet, names Mehul Choksi

CBI files second charge sheet, names Mehul Choksi

Ananthasubramanian was the CMD of Punjab National Bank till May 2017.

The stock tanked to a fresh 52-week low of Rs 74.30 on BSE and is now at Rs 75.50, down 12.2% from its previous close.

The CBI also charged 16 other entities, besides Choksi and his companies, on the charges of criminal conspiracy, cheating and provisions under the Prevention of Corruption Act.

In the Punjab National Bank (PNB) fraud case, the CBI today filed its supplementary chargesheet against Mehul Choksi and his companies under Gitanjali Group in Mumbai's Special CBI Court.

The names included Nirav Modi, his brother Nishal Modi, three companies - Diamond R US, Solar Exports, Stellar Diamond and seven employees of these companies Hemant Bhat, Vipul Ambani, Arjun Patil, Kavita Mankikar, Miten Pandya, Manish Bosamiya, and Subhash Parab.

That led to a more than tripling of its total provisions from a year earlier to Rs 20353 crore. The bank will make payments to the concerned banks on the due dates of LOUs/FLCs, PNB said.




Shares of PNB have been witnessing tremendous selling pressure ever since Nirav Modi fraud came into light.

PNB said on Tuesday it had incurred a record 134.17bn rupee net loss for the January-March quarter, having posted a 2.62bn rupee profit in the same period past year.

The filing further said that the bank has made higher than required provisions amounting to Rs 7,178.42 crore. "After including outstanding amounts under other credit facilities to the above entities, the amount involved now works out to Rs 14,356.84 crore", the bank said in its notes to accounts.

Tighter RBI rules announced in February, which did away with half a dozen loan restructuring schemes, have led to banks reporting a surge in bad loans in the March quarter, and several of them reporting losses.

PNB's share has dropped from a level of Rs 194 crore in January-end before the scam was revealed to a level of Rs 83.85 on Tuesday end of trade after tanking 6% post the announcement of its quarterly results. "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".