BDO to conduct forensic audit of Gitanjali Gems
28 March 2018
The Indian arm of Belgium headquartered professional services firm BDO is the second forensic auditor named by the lenders.
A consortium of 31 lenders led by ICICI Bank has mandated BDO India to conduct a forensic audit of Mehul Choksi-led Gitanjali Gems to determine modus operandi of the alleged fraud using Punjab National Bank guarantees, two people with direct knowledge of the matter told ET.
The Indian arm of Belgium headquartered professional services firm BDO is the second forensic auditor named by the lenders — which have a total exposure of Rs 6,000 crore to Gitanjali — after New Delhibased TR Chadha & Co.
“The decision to involve BDO India was taken on March 16 after a meeting of all bankers,” said a banker who was present in the meeting. “Some of the bankers, especially those belonging to private banks, wanted to involve a second investigator,” the person said.
The consortium has asked BDO to investigate a timeframe of seven years — 2010 to 2017 — to determine the modus operandi of the alleged fraud and to discover if Choksi has created any assets in India or abroad that are still outside the purview of banks. BDO India is already investigating an alleged embezzlement and fraud in five companies of Nirav Modi.
“BDO would have to investigate when the fraud started, how it transpired and whether there are any connections with Modi and his companies,” said a second banker who attended the consortium meeting. Email questionnaires sent to ICICI Bank, BDO India and TR Chadha did not elicit response as of press time Tuesday.