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Karnataka Bank has reported RBI that, Gitanjali Gems has committed a fraud of Rs.86.47 crore in the fund based working capital.
In a BSE filing the bank stated, “The bank has reported a fraud to Reserve Bank of India amounting to Rs.86.47 crore in the fund-based working capital facilities extended to Gitanjali Gems on account of non-realization of exports bills and diversion of funds.”
The bank further stated that, it does not have any Letter of Understanding (LoU) exposure to the company. The loan was extended under consortium arrangements.
