CBI to investigate another ₹5,280-cr loan to Choksi

NEW DELHI: A ₹5,280-crore loan extended by an ICICI-LED consortium of 31 banks to diamond merchant Mehul Choksi’s companies was under the scanner of the Central Bureau of Investigation, agency officials familiar with matter said on Wednesday.

The loan was separate from the ₹13,578 crore that Choksi and his billionaire jeweller nephew Niarv Modi, both of whom are on the run, allegedly defrauded the Punjab National Bank of, an agency official privy to the matter said.

“The loan would be taken up for investigation once the primary charges are probed,” the official said on condition of anonymity.

The loan was sanctioned to Choksi’s Gitanjali group of companies as working capital. ICICI Bank acted as lead banker for the consortium.

Choksi’s lawyer could not be contacted for comments.

“The probe with regard to loan will be part of the FIR registered against Mehul Choksi and his companies,” the official said.

A CBI spokesperson said the agency was questioned three bank officials on Wednesday as part of its probe into the PNB fraud. Two of the officials were posted with Canara Bank’s Bahrain branch and the third was with the Antwerp branch of Bank of India in Belgium.

Modi was born in the Belgian town famous for its diamonds where his father had moved to expand his business. He moved to India when he was 19 and joined Choksi’s jewellery business.

The uncle and nephew left India in the first week of January and have not returned since.

Last week, the government said it had sent a request for provisional arrest of Modi to Hong Kong, where he is believed to be hiding.