Mehul Choksi, who has fled the country along with his nephew Nirav Modi, is a defaulter of Rs 152 crore for Jammu and Kashmir Bank as he soon after taking the loan from the bank turned defaulter.
The Jammu and Kashmir Bank’s Fort branch Mumbai had sanctioned loan of Rs 121 crore to Mehul Choksi for ‘Gitanjali Gems’ in 2012.
Mehul Choksi had taken a loan from the Bank for ‘Gitanjali Gems’ in 2012,” a senior official of the bank said on Wednesday.Soon after he took the loan he turned defaulter and the bank didn’t take any action against the officials who sanctioned the loan,” he added.However, no official from that period has been under investigation or has faced any enquiry till now.” A meeting between the Indian Banks’ Association and Jammu and Kashmir Bank scheduled on Wednesday was delayed.The J&K Bank came under criticism from legislators of the Opposition last month for its defaulters and non-performing assets. The Opposition even wanted a debate regarding the weak financial condition of the bank.
According to the report, an Opposition leader, CPM’s Muhammad Yousuf Tarigami, said that the bank’s NPAs have increased to over Rs 50 billion.The lender said J&K Bank’s net NPAs narrowed to Rs 24.8 billion or 4.29 per cent of net advances in the three months ended December from Rs 26.9 billion or 5.99 per cent a year.The Income Tax Department on Wednesday attached Rs 1.45 billion belonging to jeweller Nirav Modi. The amount is found in several bank accounts, which the IT department had attached.While raids were conducted against Choksi, the Enforcement Directorate (ED) also searched the Gitanjali Gems showroom at Jammu’s Udhampur district the previous week and seized gold jewellery and diamonds worth Rs 25 million.The Jammu and Kashmir Bank has not taken any action so far against the bank officials who sanctioned the loans or the defaulter.A bank official told the financial daily, “We are collecting all details of the case.