#PNBScam : CBI interrogates officers of GM, DGM rank of other banks issued LoUs to Nirav Modi

Mumbai, April 2: Months, after Punjab National Bank was hit hard by more than Rs 13,000 crore scam involving billionaire jeweler Nirav Modi, the Central Bureau of Investigation (CBI), has questioned five officers of GM and DGM rank of Bank of India, Allahabad Bank and Axis bank.

 

Notably, the CBI in last two days has questioned five officers of GM and DGM rank of Bank of India, Allahabad Bank and Axis bank who were in-charge of international operation and treasury. CBI is investigating the role of these senior officers of other Indian banks whose overseas branches were involved in issuing buyer credit for LoUs issued through PNB.

Earlier, in last week, the Punjab National Bank has decided to tighten loan disbursement and set up a monitoring mechanism to check loan slippages and fraud under newly introduced Mission Parivartan drive. The biggest fraudulent case hit Mumbai last month where Punjab National Bank reported that it has detected fraudulent and unauthorized transactions in one of its branches in Mumbai. The cumulative fraud amounts to US $1,771.69 billion i.e. Rs 11,378.68 Crores.

After the scam was unveiled, the Enforcement Directorate registered an FIR under the Prevention of Money Laundering Act and conducted raids after the surfacing of the alleged fraud by billionaire diamond trader Nirav Modi and his Mumbai-based firms Diamonds R Us, Solar Exports and Stellar Diamonds.

On the other side, the CBI also registered fresh FIRs against 10 directors of the Gitanjali Group of companies on charges of criminal conspiracy and cheating under the Indian Penal Code (IPC) and Prevention of Corruption Act, including Mehul Choksi, the Managing Director of Gitanjali Gems Ltd based in Mumbai's Walkeshwar. The FIR also named two former bank employees said to be directly involved in the fraudulent transactions.

Intensifying the probe, CBI sealed Brady House branch of Punjab National Bank in Mumbai from where the Rs 11,378.68 Crores PNB scam was originated. The action is based on EDs raid at over 45 more locations in 15 cities across India in connection with the multi-crore Punjab National Bank (PNB) scam.

The ED on Friday and Saturday last week also conducted raids at 35 and 21 locations across India respectively in connection with the fraud involving around Rs 11,300 crore and has seized diamonds, gold and jewellery worth Rs 5,674 crore.

Meanwhile, the Ministry of External Affairs decision was based on the advice of the Enforcement Directorate (ED), which filed money laundering cases against Modi and Choksi in relation to the alleged Rs 11, 400 crore PNB fraud. MEA has also asked Modi and Choksi to respond within one week and justify why their passports should not be revoked.

Importantly, Nirav Modi and his brother Nishal Modi left the country on 1st of January this year. Nirav Modi's wife, an American citizen, left India on 6 January while Mehul Choksi left the country on 4 January. CBI received a complaint from PNB on 29th Jan 2018and registered the case on 31st January.