PNB fraud case: SFIO calls ICICI Bank CEO Chanda Kochhar, Axis' MD Shikha Sharma for questioning

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Serious Fraud Investigation Office (SFIO) has issued notices to ICICI Bank's CEO Chanda Kochhar and Axis Bank's Managing Director Shikha Sharma in the Punjab National Bank (PNB) scam worth Rs 12,700 crore, sources told Moneycontrol.

They were asked to appear in the Mumbai SFIO today. The investigative body has authorised them to send representatives in case they are not able to appear themselves.

The representatives from Axis Bank arrived at SFIO some time back for being questioned and have left now. Shikha Sharma was not present.

Meanwhile, ICICI Bank representatives are yet to come.

Also Read - EXCLUSIVE | Here's a list of banks that issued loans to Mehul Choksi's Gitanjali Gems

BSE has sought clarification from ICICI Bank and Axis Bank with respect to the news, but both the banks have not responded yet.

The Enforcement Directorate also confirmed to Moneycontrol that Choksi and Modi diverted money to related companies.

The ED has also traced some of the money being routed back to the banks for re-issuing letter of undertaking, or LoUs.

A consortium of 31 banks led by ICICI Bank has loans close to Rs 5,200 crore to Mehul Chokshi's Gitanjali Group. Nirav Modi firms Stellar Diamond and Solar Exports and Diamonds have together borrowed close to Rs 4,000 crore from banks.

Separately, the ED is also investigating the planned listing of Choksi's Nakshtra World, and Modi's Firestar International.

The Enforcement Directorate (ED) is hoping to recover Rs 3,000-4,000 crore from the real estate assets seized from Nirav Modi and Mehul Choksi, sources told Moneycontrol.

This is in addition to the diamonds and precious stones seized by ED from the two groups, which is valued at Rs 5,816 crore. The ED’s estimate of the value of precious stones seized from the two groups is based on the stock value, which is always higher than the market value of the stones.

PNB had informed stock exchanges about the Rs 11,400 crore worth of unauthorised transactions at its Brady House branch based on forged letters of undertaking (LoUs).

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.