PNB Fraud Case: CBI Questions Senior Officers Of Other Indian Banks Involved

The Central Bureau of Investigation is questioning senior officers of other Indian banks as it widens its probe in the over Rs 13,000-crore Punjab National Bank fraud case.

Officers of the ranks of general manager and deputy general manager were questioned by the CBI on how the letters of undertaking and foreign letters of credit issued by PNB in this case were executed vis-a-vis Modi’s businesses, CBI officials told BloombergQuint.

So far, five officers of Bank of India, Allahabad Bank (Hong Kong) and Axis Bank (Hong Kong), in charge of international operations and treasury, have been questioned, officials said.

The case came to light early March when PNB told the stock exchanges and the Central Bureau of Investigation that some of its employees had connived with people belonging to companies owned by Modi and his uncle, Mehul Choksi, to issue fraudulent LoUs to receive buyer’s credit from foreign branches of other Indian banks.