RJ Market Watch
India fines jewellery firm Gitanjali Gems for withholding information in $2 billion bank fraud
![Gitanjali Gems](https://retailjewellerindia.com/wp-content/uploads/2020/03/c348b7d6365e680e09f72d62e8b1cd222308993.jpg)
India’s securities regulator on Thursday fined jewellery retailer Gitanjali Gems Ltd and its executives 50 million rupees ($695,700) for failing to disclose key information related to a $2 billion fraud at Punjab National Bank (PNB).
Gitanjali’s promoter and managing director, Mehul Choksi; his nephew, billionaire jeweller Nirav Modi, and others were accused of being involved in fraudulent transactions that led to losses of roughly $2 billion for PNB.
PNB, India’s second-biggest state-run bank, in 2018 alleged that a few rogue employees had issued fake bank guarantees over several years to help jewellery groups – controlled by Modi and Choksi – raise funds in foreign credit. Both have denied any wrongdoing.
Gitanjali failed to properly disclose the withdrawal of the credit limit by PNB, actions by various enforcement agencies relating to the case and the resignation of key executives, the Securities and Exchange Board of India (SEBI) said in an order.
The regulator also said that Gitanjali Gems failed to make proper disclosures about defaulting on bond payments owed to state-run Life Insurance Corp, India’s largest insurer.
Modi was arrested in London in March last year and is currently fighting extradition to India, while Choksi, according to reports, is residing in the Caribbean nation of Antigua and Barbuda.
Courtesy: FASHIONNETWORK
- Personal Opinion1 month ago
Buy-back on gemstones to be on par with gold; A fear of return on the investment, more among high-end clients: Ankur Anand, Harsahaimal Shiamalal Jewellers
- Exclusive2 months ago
Prasad Jewellers’ Gold Bar Challenge fulfils multi-channel engagement goals, attracts young customers
- Maverick Greenhorn2 months ago
Segmenting retail approach to boost business performance
- Daily News1 month ago
TBZ – The Original launches its first store in Jaipur