An employee inspects a used diamond ring inside a jewelry store. (Photographer: Akio Kon/Bloomberg)  

PNB Fraud: Gitanjali Gems Slumps After CFO, Compliance Officer Quit  

Two key executives of Gitanjali Gems Ltd. resigned from the company after the company came under scanner along with other jewellers in the over Rs 11,000-crore Punjab National Bank scam.

Pankhuri Warange resigned from the post of company secretary on Feb. 13, citing conscience limitations to continue at the position, while Chandrakant Karkare resigned from the post of the chief financial officer on Feb. 15 citing wife’s illness, the jewellery company said in stock exchange filing today.

In another stock exchange filing, the company said Krishnan Sangameswaran has resigned from its board.

Also Read: The Nirav Modi-PNB Fraud Case: Everything We Know So Far

Gitanjali Gems came under scanner along with three major big jewellers—Ginni, Nakshatra and Nirav Modi— following PNB's declaration of Rs 11,400 crore fraud, committed allegedly by Nirav Modi.

Investigations revealed significant irregularities because the forex transactions were done mainly via advance remittances for import, through newly-opened current accounts. Massive cash transactions – sometimes four or five times a day – were also noticed, according to a PTI report.

Shares of the company were trading nearly 10 percent down at Rs 33.75 apiece on the NSE. The stock has slumped a whopping 49 percent since Feb. 15.

PNB, India’s second largest state-owned lender, disclosed on Feb. 14 that it was the victim of the country’s largest bank fraud. PNB revealed that fraudulent transactions by billionaire jeweller Nirav Modi and related entities amounted to $1.77 billion.

Modi, as it turned out, had left the country on Jan. 1. Now the CBI is trying to get him. They already approached the Interpol for help in locating Modi and his family. It also registered a fresh FIR against Mehul Choksi, Modi's maternal uncle and the promoter of Gitanjali Group, who is also named in the fraud.