J&K Bank freezes all debits of Gitanjali Gems

Excelsior Correspondent
JAMMU, Feb 22: Jammu and Kashmir Bank said today that it has already initiated freeze on all debits in the account of Gitanjali Gems Limited, owned by Mehul Choksi, who has fled to foreign after his involvement in Rs 11,400 cr scam surfaced along with Nirav Modi.
“The Jammu and Kashmir Bank has issued recall notice to Gitanjali Gems, which will be followed by legal action,” an official handout issued by the Bank today said.
The Bank confirmed that Gitanjali Gems had been sanctioned a working capital loan of Rs 121 crore from its Fort business unit in Mumbai in 2012 under a consortium, arrangement of 31 banks led by ICICI.
It said that Jammu and Kashmir Bank’s share in the total loan facilities of Rs 5198 crore by the consortium was 2.33 per cent.
“It the wake of recent developments of the company with PNB, the consortium recently discussed and agreed that Banks may individually decide to recall the facilities and may also freeze all the accounts except for allowing few mandatory/statutory payments,” the handout said.
It said the Bank had during its clean up and consolidation drive about a one and a half year ago, reckoned the account as a stressed account and consciously avoided additional exposure in the company.

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