Probe into one of India's biggest banking scams over lending extended to diamantaires — Nirav Modi and his maternal uncle Mehul Choksi, is widening. The net is getting wider to private sector banks with the Mumbai wing of Serious Fraud Investigation Office (SFIO) issuing summons to ICICI CEO Chanda Kochhar and Axis Bank CEO Shikha Sharma over a consortium of 31 banks lending of Rs 5,280 crore extended to Choksi's Gitanjali Gems.
Sources said executives of other banks would be also called later.
"Both Kochhar and Sharma sent their representatives today. Officials from the other banks will be also called for questioning," sources said.
"SFIO has written to all the banks in the consortium and senior officials from the bank will have to explain under what circumstances the loans were sanctioned and whether collaterals were offered," sources added.
ICICI Bank is the lead banker in the consortium of 31 banks which have a collective exposure of over Rs 6,800 crore to Gitanjali Gems.
In a reply to stock exchanges, ICICI Bank said it is a part of the working capital lender consortium, adding its exposure is not the highest. "Bank has no exposure in the Nirav Modi group of companies nor has the bank issued any letters of undertaking nor has any buyer's credit exposure against LoUs with either Nirav modi group or the Gitanjali group."
Axis Bank said its exposure to these entities is just Rs 200 crore and that the bank is not a leader in the consortium. The bank added that the summons from SFIO was in connection with information sought on Nirav and Gitanjali Groups.
