NEW DELHI: Allahabad Bank has an exposure of around Rs2,000 crore by way of letter of undertakings (LoUs) issued by Punjab National Bank to Nirav Modi, the billionaire diamond merchant in the centre of a Rs 11,400-crore fraud.
Modi, 46, a regular feature on the lists of rich and famous Indians since 2013, was booked by the CBI, along with wife, brother and Choksi on January 31, for allegedly cheating the state-run PNB to the tune of Rs 280 crore.
While Modi runs the jewellery brand chain under his name, Mehul Choksie is the promoter of Gitanjali Gems. ED had registered a PMLA case against them and others based on a CBI FIR based on PNB’s complaint.
The jewellery designer is a citizen of the country but his brother Nishal and wife Ami are not Indian nationals. They all left India between January 1 and 6, CBI said.
The source said that money had been credited to the Nostro account of PNB from the Hong Kong branch of Allahabad Bank. The bank has already filed for claims, the source said.
Other banks which were involved in giving credit based on LoUs issued by PNB were Axis Bank, Union Bank and SBI.