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Karnataka Bank latest to disclose Rs 84 crore loan fraud involving Gitanjali Gems

Karnataka Bank latest to disclose Rs 84 crore loan fraud involving Gitanjali Gems: Karnataka Bank Ltd said announced on the last Wednesday which has reported a fraud totaling of around Rs 86.47 crore in loans that comprehensive to Gitanjali Gems Ltd.

Karnataka Bank latest to disclose Rs 84 crore loan fraud involving Gitanjali Gems

“The bank has reported a fraud to Reserve Bank of India amounting to Rs 86.47 crore in the fund based working capital facilities extended to Gitanjali Gems Limited on account of non-realization of exports bills and diversion of funds,” said the bank in a BSE filing late on the Wednesday.

Though, the bank added this which does not have any letter of undertaking (LoU) that seems like experience to Gitanjali Gems. The loan was comprehensive under consortium arrangements, stated by the bank.

Karnataka Bank is now turning to be the latest bank uncovered and open to consisting of the wider loan fraud involving Gitanjali Gems and owner Mehul Choksi.

Investigative agencies are questioning 31 private and state-run banks which are regarded as the consortium provide the working capital loans worth Rs5,280 crore to Choksi-controlled Gitanjali Gems begin around 2009, Mint reported previously.

This is being separate and isolated from the Rs12, 636 crores Punjab National Bank (PNB) fraud investigation, that is involved in the fake LoUs also.

With this issue make headlines, it seems like that the Frauds is turned to be part of life these days as many news related to fraud get attention and limelight.

It does not seem to cease for the banking sector and now is the turn of Karnataka Bank which also get limelight or come in news related to this same issue which is related to the Gitanjali Gems.

This is over and above the Rs, 13,000-crore fraud investigation that is consists of the fraudulent LoUs issued via PNB against which different kind of the overseas bank branches seems like, reportedly given loans to Nirav Modi’s group firms and Gitanjali Group anyway.