ED files charge sheet against Mehul Choksi and 13 others in PNB fraud
The Enforcement Directorate (ED) on Thursday filed charge sheet against absconding jewellery trader Mehul Choksi and 13 others in the Rs 14,000 crore PNB scam. Choksi, the owner of Gitanjali Group, was charged under PMLA for money laundering. Choksi is accused of defrauding PNB by illegally obtaining Letter of Undertaking (LoUs)/Foreign Letters of Credit (FLCs). According to the ED, three companies of Mehul Choksi namely – Gitanjali Gems Ltd, Gili India Ltd and Nakahatra Brands Ltd have got fraudulently issued LoUs to the tune of Rs 3011.39 crore and fraudulently got the credit limit of these FLCs enhanced to the tune of Rs 3086.24 crore. Total proceeds of the crime in the case now stand at Rs 6097.63 crore.
MFIs turn aggressive lenders; signs of over borrowing emerge in micro lending
With multiple financial institutions chasing same set of borrowers in rural areas, signs of over-borrowing are now apparent in the microfinance sector. In fact, close to 20-30 per cent of applications received by micro lending institutions are now getting rejected on account of existing excess borrowing. Banks now account for a major 37 per cent of MFI portfolio, while small finance banks (SFBs) control another 22 per cent of the portfolio. The rest is accounted by NFBFC MFI, NBFCs and non-profit making MFIs. The present regulations governing over-indebtedness applies only to NBFCs MFIs and MFIs (non-profit ones).
Winsome diamonds fraud case: CBI charge sheets 2 ex-CMDs of Canara bank
The CBI has filed a charge sheet against two former chairman-cum-managing directors of the Canara Bank in connection with alleged loan default of Rs 146 crore by Jatin Mehta of Winsome Diamonds and has also sought a Red Corner Notice against the billionaire jeweller. Mehta is absconding and believed to have got St Kitts passport, sources said. The agency has filed the charge sheet against 21 accused which includes Mehta, his company, his wife besides 15 public servants, CBI Spokesperson Abhishek Dayal said. The public servants charge sheeted by the agency includes former CMDs Avinash Chander Mahajan and Sunder Rajan Raman.
Banks mull common portal to offer competitive personal, housing & other retail loans
State-run banks are mulling a common portal where they could offer competitive and instant personal, housing and other retail loans based on the creditworthiness of the borrower. The government is expected to help the banks set up such a portal which at some later stage can also be used for offering loans to small and micro industries. “This is the next phase of banking where customers can avail of loans quickly and don’t have to run around waiting for approvals,” said a senior finance ministry official. The government first introduced the Pradhan Mantri Jan Dhan Yojana to make formal banking more inclusive and now it is time to scale it up, he added.
Bhushan Power bid: Liberty Steel banking on NCLAT decision
Liberty Steel is confident that its highest bid to acquire Bhushan Power and Steel will get the National Company Law Appellate Tribunal’s (NCLAT) approval even as the committee of creditors (CoC) in its last meeting selected Tata Steel, the second highest bidder for the stressed asset. “Liberty Steel has submitted all the financial details along with bank guarantee for the bid amount to CoC, according to the process prescribed, but it is surprising that they (CoC) have decide to go with the second highest bidder,” sources said, claiming that there has been no official communication from the CoC.
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