United Bank of India Declares Mehul Choksi, Gitanjali Gems As Wilful Defaulters
Choksi and his nephew Nirav Modi are at the centre of the $2 billion PNB fraud case that surfaced in February 2018. They had defrauded Punjab National Bank of over Rs 13,000 crore at the Brady House branch in South Mumbai between 2011 and 2017.
The notice against Choksi and Gitanjali Gems was issued after the company failed to repay the dues despite several notices by it, the bank said. Besides Choksi, his wife, Priti Choksi, and directors of Gitanjali Gems have also been served notices by the bank.
United Bank had sanctioned Rs 331.85 crore in credit limit to Choksi's firm, which was into jewellery manufacturing and export. The bank had declared the account as a non-performing asset in March 2018. Earlier this year, another state-run bank Oriental Bank of Commerce had declared Choksi and Modi as wilful defaulters.