New Delhi, Feb 15 (PTI) As a multi-agency probe continues against Nirav Modi for allegedly masterminding India’s biggest-ever banking fraud, the stock market dealings of his relative and close associate Mehul Choksi has come under the scanner of markets regulator Sebi and stock exchanges.
The Securities and Exchange Board of India (Sebi) and the stock exchanges have begun analysing the stock market trade details of all entities associated with Modi including Choksi, who has already been under scanner for various cases including a brokerage default incident, a senior official said.
The regulator and the exchanges are also probing Choksi and his listed entity Gitanjali Gems for disclosure lapses, including for postponement of a board meeting earlier this week without disclosing sufficient reasons.
Choksi was not immediately available for comments and his phone was found to be switched off.
Gitanjali Gems shares continued to slump with a plunge of 20 per cent today. This is the second straight session of decline for the stock. The shares of Gitanjali Gems have tanked 42.20 per cent in the last one month.
The stock market dealings of billionaire jeweller, his relative and close associate Mehul Choksi came under the scanner of Sebi and stock exchanges following Punjab National Bank’s declaration of nearly Rs 11,400-crore fraud.
Apart from Sebi and exchanges, they are being probed by CBI and Enforcement Directorate among other agencies.
The state-owned bank said it had detected the fraud in which Modi allegedly acquired fraudulent letters of undertaking (LoUs) from one its branches for overseas credit from other Indian lenders.
The bank today said it will take all possible action against the wrong-doers in the Rs 11,400-crore Nirav Modi fraud case, which started in 2011.
It has suspended 10 officers over the scam and referred the matter to the CBI for investigations. The Enforcement Directorate is continuing raids at various places associated with the well-known jewellery designer.
This is published unedited from the PTI feed.