Karnataka Bank said it does not have any letter of undertaking exposure to Gitanjali Gems. Photo: PTINew Delhi: Karnataka Bank Ltd said on Wednesday that it has reported a fraud totaling Rs86.47 crore in loans extended to Gitanjali Gems Ltd.“The bank has reported a fraud to Reserve Bank of India amounting to Rs86.47 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 Wednesday. However, the bank added that it does not have any letter of undertaking (LoU) exposure to Gitanjali Gems. Karnataka Bank become the latest bank exposed to a wider loan fraud involving Gitanjali Gems and owner Mehul Choksi. This is separate from the Rs12,636 crore Punjab National Bank (PNB) fraud investigation, which involved fake LoUs.

Source: Mint March 29, 2018 06:45 UTC