These top bankers have been issued summons over the Rs 3,280 crore working capital loan to Mehul Choksi's Gitanjali group. The bank had alleged that two of its officials had issued the forged LoUs, which allowed the Gitanjali group and Nirav Modi group of companies to borrow money from overseas banks, with PNB as the guarantor of the loans. He was brought in for questioning to the CBI office from Mumbai Airport.
"ICICI Bank has no exposure to the Nirav Modi group of companies, nor has it issued any Letter of Undertaking; nor has any buyer's credit exposure against LOUs with respect to the Nirav Modi group of companies as well as the Gitanjali group of companies", the ICICI Bank response said.
Though Nirav Modi (R) has not yet been arrested, India's External Affairs Ministry has revoked his passport as well as his uncle Mehul Choksi (L) for their involvement in the scam. "They have been summoned for giving the loan facility to Gitanjali Group". Its exposure to the Gitanjali group, it said, is not the largest among the lenders in the consortium. He has been taken for questioning at the Bandra-Kurla Complex, an official said.
An LoU is a guarantee by a bank to pay another lender for imports by companies and is considered crucial for cross-border trade.More news: Tributes flood in for athletics hero Sir Roger Bannister
At least 73 companies associated with Choksi have come under the scanner of the CBI, Enforcement Directorate (ED) and the SFIO in the wake of the alleged Rs 12,700 crore fraudulent transactions at Punjab National Bank involving three of Choksi's companies.
"The examination of the documents, including the bank's internal inspection report, revealed, inter alia, non-compliance with the directions issued by RBI on KYC norms", RBI said. PNB dropped 2.3 percent and Axis Bank fell 1.4 percent, pushing the 10-member S&P Bankex Index to its fifth day of declines.
The jewelers are accused of getting letters of undertaking (LoUs) based on fraudulent claims from PNB, which bank officials did not enter in their internal software to avoid scrutiny.