MUMBAI: The Life Insurance Corporation of India (LIC) has as regards to Rs 25 crore exceptional from the Gitanjali crew, in opposition to which it has safety of the gang’s Hyderabad Gem Special Economic Zone (SEZ). The company had originally prolonged a loan of Rs 125 crore, a large a part of which has been repaid.
The only exposure the company has to the Nirav Modi/Mehul Choksi teams is a time period loan provided for the SEZ. The Hyderabad Gems SEZ is a subsidiary of Gitanjali crew and is likely one of the houses attached via the source of revenue tax (I-T) department. The belongings has been valued at Rs 1,200 crore and is registered as a diamond processing zone.
According to lenders, if LIC pursues restoration beneath the Insolvency and Bankruptcy Code (IBC) in the National Company Law Tribunal (NCLT), it'll must give up safety at the assets. But the benefit in pursuing restoration beneath the IBC is that the creditors’ declare features priority over the federal government’s or even that of employees. However, if the company chooses to put in force its safety pastime, it will face claims from other government departments.
The SEZ is one of the largest processing centres for the Nirav Modi crew. Besides Nirav Modi and Mehul Choksi crew firms, the SEZ additionally properties several diamond and jewelry production gadgets. The I-T department had first raided billionaire diamond jeweller Nirav Modi in January 2017 on charges of alleged tax evasion and had additionally surveyed Gitanjali Gems promoter Choksi’s businesses.
In February, PNB had filed a felony complaint with the CBI in opposition to the Nirav Modi and Mehul Choksi teams after it detected unauthorised letters of enterprise (LoUs) price Rs 12,600 crore issued of their favour. The two firms had raised money from overseas branches at the power of those LoUs and had subsequently defaulted on their loans.
Following the detection of the fraud, Modi and Choksi are being investigated via a couple of agencies. The Gitanjali Gems Park in Hyderabad has been closed following a raid via the Enforcement Directorate (ED) in reference to the fraud. This has hit several hundred workers in the SEZ.
The only exposure the company has to the Nirav Modi/Mehul Choksi teams is a time period loan provided for the SEZ. The Hyderabad Gems SEZ is a subsidiary of Gitanjali crew and is likely one of the houses attached via the source of revenue tax (I-T) department. The belongings has been valued at Rs 1,200 crore and is registered as a diamond processing zone.
According to lenders, if LIC pursues restoration beneath the Insolvency and Bankruptcy Code (IBC) in the National Company Law Tribunal (NCLT), it'll must give up safety at the assets. But the benefit in pursuing restoration beneath the IBC is that the creditors’ declare features priority over the federal government’s or even that of employees. However, if the company chooses to put in force its safety pastime, it will face claims from other government departments.
The SEZ is one of the largest processing centres for the Nirav Modi crew. Besides Nirav Modi and Mehul Choksi crew firms, the SEZ additionally properties several diamond and jewelry production gadgets. The I-T department had first raided billionaire diamond jeweller Nirav Modi in January 2017 on charges of alleged tax evasion and had additionally surveyed Gitanjali Gems promoter Choksi’s businesses.
In February, PNB had filed a felony complaint with the CBI in opposition to the Nirav Modi and Mehul Choksi teams after it detected unauthorised letters of enterprise (LoUs) price Rs 12,600 crore issued of their favour. The two firms had raised money from overseas branches at the power of those LoUs and had subsequently defaulted on their loans.
Following the detection of the fraud, Modi and Choksi are being investigated via a couple of agencies. The Gitanjali Gems Park in Hyderabad has been closed following a raid via the Enforcement Directorate (ED) in reference to the fraud. This has hit several hundred workers in the SEZ.
LIC faces Rs 25 crore exposure to Gitanjali
![LIC faces Rs 25 crore exposure to Gitanjali]()
Reviewed by Kailash
on
March 07, 2018
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