Banks Face Nearly Rs. 20,000 Crore Blow In Nirav Modi Case: Tax Department

By 18th February 2018 0 Comments


Indian banks could take a hit of more than $3 billion from loans and corporate guarantees provided to diamond companies at the centre of the massive fraud case at the state-run Punjab National Bank, the tax department has estimated.

As of March 2017, banks had extended loans and guarantees worth Rs. 17,632 crore ($2.74 billion) to companies tied to billionaire jeweller Nirav Modi and his uncle Mehul Choksi, the tax department said in a note seen by Reuters.

Since then, the loans and guarantees would have increased over the past year and the total “hit” to Indian banks “may well exceed” $3 billion, according to an internal note prepared by the tax authority on its preliminary investigation into India’s biggest bank fraud case.




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