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Now fraud by Gitanjali Gems in Karnataka bank reported

By Vicky Nanjappa
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    The Karnataka Bank Ltd has informed the Reserve Bank of India that Gitanjali Gems owned by Mehul Choksi had committed an Rs 86.47 crore fraud in the fund based working capital.

    Now fraud by Gitanjali Gems in Karnataka bank reported

    In a regulatory filing on the BSE, the bank said, " We have reported a fraud to the RBI amounting to 86.47 crores in the fund based working capital facilities extended to Gitanjali Gems Ltd on account of non-realisation of export bills and diversion of funds.

    "The working capital facilities were extended by the bank under consortium arrangement and provisions will be made as per the RBI guidelines," the bank's Company Secretary Prasanna Patil said in the filing.

    The bank, however, clarified it does not have any Letter of Understanding exposure in Choksi's company.

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