CBI Arrests Two PNB Officials, Authorised Signatory Of Nirav Modi Company

The Central Bureau of Investigation arrested two officials of Punjab National Bank, including a now-retired deputy manager, and an authorised signatory of billionaire Nirav Modi’s company in connection with alleged fraudulent transactions worth Rs 11,400 crore, officials said.

Gokulnath Shetty, a former deputy manager (now retired), and Manoj Kharat, a single window operator are the two PNB officials taken into custody. Hemant Bhat, from the Nirav Modi group, has also been arrested by the agency in connection with its first information report registered on Jan. 31 against Modi, his companies, and uncle Mehul Choksi, officials added.

The three were produced before a special CBI court today and remanded to policy custody for 14 days, the agency said in a statement. Meanwhile, 6 PNB officials are also being examined, it added.

The FIR has listed eight fraudulent transactions worth over Rs 280 crore but based on further complaints from the bank the CBI now says the amount investigated in the first FIR is over Rs 6,498 crore, involving 150 Letters of Understanding allegedly fraudulently issued by Shetty and Kharat.

The remaining 150 fraudulent LOUs worth over Rs 4,886 crore issued for Gitanjali group of companies are part of the second FIR registered on Feb. 16 by the agency against Choksi and his companies Gitanjali Gems Ltd., Nakshatra Brands Ltd. and Gili India Ltd., they said.

All these LOUs were issued or renewed during 2017-18, the officials said.

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(With inputs from PTI)