Gitanjali Gems Stock Shed 35% Value Within 2 Days

Shares of jewelry firm Gitanjali Gems that is owned by the uncle of Nirav Modi, declined by 20% by dropping down to Rs. 37.55 on Mumbai Stock Exchange or BSE, showing a steady decline of 35% in the days since the announcement of fraud by PNB. The firm’s shares fell drastically after it came under scrutiny of investigation agencies for the multi-crore fraud. The shares of Punjab National Bank also fell by several points after the fraud carried out by its officials was announced and on Friday fell by 2.5% again.

Gitanjali Gems Stock Shed 35% Value Within 2 Days

BSE has also sought clarification from Gitanjali Gems based on reports by PTI stating that large jewelers like Gitanjali and Ginni along with Nakshatra were under scanner of investigative agencies for their association with Nirav Modi’s family. The PNB bank has stated that one of its Mumbai braches was instrumental in giving out LoUs to Nirav Modi’s firms without due diligence. Mumbai Stock Exchange has also asked for details of the raids conducted by Enforcement Directorate officials on the premises of Gitanjali Gems and its owners based on a recent news article. The raids have unearthed gems and jewelry that may cover only a small part of the amount.

Though the Punjab National Bank’s officials and representatives tried to sooth the frayed nerves of their investors with statements that they will fulfill all financial commitments, no such statements were made by Nirav Modi’s firms and showrooms across India. PNB’s senior officers stated that their staffs were providing all help to regulators to detect the extent of the swindle and find out how it could have stayed undetected for so many years. The bank stated that two junior staff members of its Mumbai branch were responsible for issuing fraudulent “Letters of Credit” without proper guarantee that were used by the company’s representatives to take out huge sums of money at foreign locations.

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