Mama Choksi to close Gitanjali Gems? Employees asked to leave

Mumbai, Feb 20: At centre of the Rs 11,400-crore PNB scam, is Gitanjali Gems on the verge of shutting down? It seems so. On Tuesday, the company has asked all its employees to take relieving letters from the HR department immediately. The company said that no staff will get salary from February 2018.  

Meanwhile, shares of Gitanjali Gems tumbled further by nearly 10 per cent to hit its lowest trading permissible limit for the day after the company came under the scanner of various investigating agencies following the PNB's Rs 11,300-crore fraud detection.

The stock tanked 9.91 per cent to Rs 30.45 -- its lowest trading permissible limit -- on BSE.

At NSE, shares of the company dived 9.92 per cent to Rs 30.40 -- its lower price band.

In five straight trading sessions, the stock has lost over 51 per cent, wiping out Rs 383.81 crore from its market valuation.

Meanwhile, selling was also seen in other jewellery stocks, with Tribhovandas Bhimji Zaveri trading down by 0.98 per cent and PC Jeweller 0.30 per cent on BSE.

On February 14, Punjab National Bank (PNB) disclosed that it detected some fraudulent transactions with financial implication of about Rs 11,346 crore and the matter has been referred to law enforcement agencies for the recovery.
While billionaire jewellery designer Nirav Modi, the alleged perpetrator of this fraud, is not directly linked to any listed company, his relative and business associate Mehul Choksi's Gitanjali Gems is a listed firm.

News24Bureau with PTI inputs