With collateral of Rs 100 crore, Mehul Choksi got Rs 5,280 crore loan

Mangalore Today News Network

Mumbai, Feb 28, 2018 : A preliminary investigation by probe agencies into firms associated with Gitanjali Gems promoter Mehul Choksi has found that a consortium of 31 banks lent Rs 5,280 crore to his firms between November 2010 and April 2014 against a collateral of only about Rs 100 crore, sources familiar with the development said.

 

Allbank Finance Ltd, a wholly-owned subsidiary of Allahabad Bank, is the custodian of securities in this case.

Sources said probe agencies have told officials of Allahabad Bank and Allbank Finance to share details of the outstanding loans to Choksi’s firms and explain the reasons for the inadequate collateral against the loans.

Email, phone calls and text messages to Allahabad Bank and Choksi for comments did not elicit any response.

Choksi took loans from Allahabad Bank, Andhra Bank, Bank of Maharashtra, Bank of Baroda, Bank of India, Central Bank of India, Canara Bank, Corporation Bank, Dena Bank, Export Import Bank of India, Indian Overseas Bank, ICICI Bank, IDBI Bank, IndusInd Bank, Karnataka Bank, Karur Vysya Bank, Punjab National Bank, Punjab and Sind Bank, Standard Chartered Bank, State Bank of Hyderabad, State Bank of India, State Bank of Bikaner and Jaipur, Syndicate Bank, Union Bank, United Bank, Vijaya Bank, State Bank of Mauritius, Catholic Syrian Bank, Lakshmi Vilas Bank, Jammu and Kashmir Bank and Oriental Bank of Commerce.


courtesy:Indian Express