Gitanjali Gems falls 5%, hits fresh 52-week low after VP arrested in PNB fraud case
New Delhi: Shares of Gitanjali Gems Ltd plunged by another 5% in morning trade as the Central Bureau of Investigation (CBI) tightened the noose on Punjab National Bank (PNB) scam offenders by arresting the vice president of Gitanjali Group of Companies.
The agency on Tuesday arrested Vipul Chitalia in the Rs12,636-crore PNB scam and claimed that he was a “mastermind” who reported directly to diamond trader Mehul Choksi.
Reacting to the development, Gitanjali Gems stock slumped 5% to hit its fresh 52-week low of Rs17.45 on BSE. This is the 15th straight session of fall for the stock. It has lost as much as 80% since 14 February, the day PNB fraud came to light. On NSE, the stock fell to a 52-week low of Rs17.40.
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CBI says Chitalia had left the country in the last week of January, as did the prime accused Nirav Modi and Choksi. The fraud was allegedly perpetrated by Modi and his uncle Choksi, the promoter of Gitanjali Gems. It is alleged that they got LoUs and FLCs of Rs 12,636 crore issued in favour of foreign branches of Indian banks based on fraudulent claims.
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