How many Nirav Modis? Chennai-based jeweller Kanishk Gold siphoned off Rs 824 crore from 14 banks


Even when the PNB fraud worth Rs. 12,000 crore is still in news, another fraud worth Rs. 824 crore has come to light. Kanishk Gold Pvt Ltd (KGPL), a Chennai-based jeweller, has been accused of defrauding a consortium of 14 banks led by the State Bank of India (SBI) to the amount of Rs 824 crore in the form of loans. What is even worse is that these loans have now been declared as non-performing asset (NPA).

In the PNB fraud, wherein diamond czar Nirav Modi and Gitanjali Group’s Mehul Choksi used Letters of Undertaking (LoUs) to defraud the bank, the KGPL allegedly resorted to falsifying financial statements to get loans from the banks over a period of 10 years beginning 2008.

The list of the banks is topped by the State Bank of India (SBI) with Rs. 240 crore, followed by Punjab National Bank (PNB) (Rs 128 crore), Bank of India (Rs 46 crore), IDBI (Rs 49 crore), Syndicate Bank (Rs 54 crore), Union Bank (Rs 53 crore), Uco Bank (Rs 45 crore), Central Bank (Rs 22 crore), Corporation Bank (Rs 23 crore), Bank of Baroda (Rs 32 crore), Tamil Nadu Mercantile Bank (Rs 27 crore), HDFC (Rs 27 crore), ICICI Bank (Rs 27 crore) and Andhra Bank (Rs 32 crore).

Read more: Red flags started going up around Nirav Modi’s diamond empire as early as 2015

It is also perceived that the Directors of the KGPL, Bhoopesh Kumar Jain and his wife Neeta Jain may have fled the country. The SBI, in its complaint to the Central Bureau of Investigation (CBI), has claimed that Bhoopesh Kumar Jain and his wife Neeta Jain had colluded with statutory auditors to falsify records and misrepresent financial statements with a clear intent of cheating the banks.

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