Mumbai: Union Bank of India's Chief Executive Officer admitted that the bank had a direct credit exposure to Nirav Modi and Mehul Choksi's Gitanjali group of companies. The Bank has a direct exposure of Rs 120 crore ($18.4 million) to companies controlled by jeweller Nirav Modi, and another Rs 175 crores ($26.9 million) to Gitanjali group of companies.
Nirav Modi and his uncle Mehul Choksi have been accused of defrauding Punjab National Bank of $2 billion- Rs 12600 crores. The bank alleged firms controlled by the duo colluded with rogue PNB staff to secure fraudulent guarantees that were used to raise credit from overseas branches of Indian banks.
19 people have been arrested so far. But neither Modi and Choksi, nor the accused PNB employees have admitted to wrongdoing.
Union Bank's latest figures are apart from the previous $300 million exposure that was previously reported, according to Rajkiran Rai, Chief Executive of state-run Union Bank.
This week, the Central Bureau of Investigation (CBI) filed a new complaint against jeweller Modi alleging that companies he controlled had misused even legitimate loans and guarantees.