PNB fraud case fallout: Gitanjali Gems share price falls by this whopping amount to new low

PNB fraud: Shares of Gitanjali Gems cracked another 5 per cent in morning trade on bourses today after CBI said that the PNB fraud was going on since 2010. The CBI yesterday said the violation of norms for issuance of Letters of Undertaking (LoUs) to benefit billionaire jeweller Nirav Modi and his uncle Mehul Choksi had been going on since 2010. Reacting to the development, Gitanjali Gems stock slumped 5 per cent, to hit its fresh 52-week low of Rs 18.35 on the BSE.

This is the 14th straight session of fall for the stock. It has lost as as much as 75 per cent since February 14, the day the PNB fraud came to light. On the NSE, the stock fell to a 52-week low of Rs 18.30.

CBI, which secured a 12-day remand of four accused arrested yesterday, explained the modus operandi involved in the alleged Rs 12,636-crore PNB fraud before the special CBI court here.

An LoU would be issued to one of the firms of Modi and Choksi, and after the money was credited to the applicants' account, a new LoU would be obtained to "adjust" the earlier one, the CBI lawyer said.

This had been going on since 2010, the lawyer said, while seeking remand of four accused including Aniyath Shiv Raman Nair, Director of Gitanjali Group of Companies of Choksi.

It is alleged that Choksi and Modi got LoUs and Foreign Letters of Credit (FLCs) of Rs 12,636 crore issued in favour of foreign branches of Indian banks based on fraudulent claims.