Former Deputy Manager of PNB among three held

Tribune News Service                

New Delhi, February 17 

The CBI today arrested three persons, including former Deputy Manager of the Punjab National Bank (PNB) Gokulnath Shetty, in the Rs 11,400-crore banking fraud in which billionaire damantaire Nirav Modi is the prime accused. Nirav, along with his family, has fled the country.

The bank’s single window operator, Manoj Kharat, and the authorised signatory of the Nirav Modi group of firms, Hemant Bhat, too have been arrested. A special court in Mumbai today remanded them to CBI custody for a fortnight (till March 3). The scam has “consequences for the economy of the nation”, special CBI judge SR Tamboli observed.

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Sources said a CBI team visited Shetty’s flat at Rustomjee Ozone Complex in West Mumbai’s Malad on Thursday and Friday and questioned his family members on when the flat was purchased, the mode of payment and the source of funds. They also sought to know about his bank accounts, lockers and other assets. 

In an FIR, the CBI has alleged that Shetty and Kharat, in connivance with the accused companies and others, defrauded the PNB of Rs 4,886.70 crore. It has accused the officials of issuing fraudulent and unauthorised letters of undertakings (LoUs) in favour of foreign branches of various India-based banks. 

The officials allegedly omitted entries of LoUs in the core banking system of the bank issued on behalf of the accused companies to avoid being caught, the sources said.  

In the new FIR, among the accused are Mehul Choksi (MD- Gitanjali Gems), Gokulnath Shetty, Manoj Kharat, companies Gitanjali Gems Limited, Gili India Limited, Nakshatra Brand Limited and directors Krishnan Sangameshwaran, Nazura Yash Ajaney, Dinesh Gopaldas Bhatia, Aniyath Shivraman Nair and Dhanesh Vrajlal Sheth. 

The CBI had earlier filed a separate case regarding a Rs 280-crore fraud, which has now been expanded to cover LoUs worth Rs 6,498 crore issued to Nirav Modi and Choksi companies. In a complaint to the CBI last month, the PNB had alleged that 293 LoUs worth Rs 11,400 crore were fraudulently issued to these companies from one of its branches in Mumbai.

More raids, assets worth Rs 5,674 cr seized, says ED 

New Delhi: The Enforcement Directorate on Saturday raided 21 places across India in connection with the PNB scam. “The ED conducted further searches at 21 locations in the Nirav Modi case and seized diamonds, gold, precious stones, and jewellery worth Rs 25 crore (book value). The total seizure till now is Rs 5,674 crore,” ED spokes-man Anil Rawal said. IANS

Now, fraud at pvt bank

New Delhi: Chennai-based private sector City Union Bank on Saturday said it suffered three fraudulent remittances of nearly $2 million (about Rs 12.8 crore). Like the PNB fraud, no entries of remittances were made in the ledgers and transfers were pushed through the SWIFT financial platform. PTI