Gitanjali Group’s Vice President, Vipul Chitalia, detained by the CBI

The Hush Post: The Central Bureau of Investigation detained the Vice President of Gitanjali Group, Mr. Vipul Chitalia today. Chitalia was caught at the Mumbai airport and was taken to the CBI office in Mumbai.

He was arrested as part of the investigations in the multi crore PNB fraud. The CBI has not released any other details apart from those relating to the arrest.

The PNB scam was orchestrated by billionaire jeweller Nirav Modi and his relative, Mehul Choksi, who is the promoter of Gitanjali Jewellers.

Choksi and Modi allegedly got Letters of Undertaking (LOUs) and Foreign Letters of Credits (FLCs) to the tune of 12,636 crores issued in favour of foreign branches of Indian banks.

As per reports, a majority of the LOUs were issued between 2014-2017, and PNB officials were often bribed to obtain the LOUs.

An LOU is a guarantee that the bank is obliged to repay the loan if the actual borrower fails to do so.

Leave a Reply