PNB scam: CBI arrests Gokulnath Shetty and other top PNB officials

In latest development regarding the Rs 11, 400 crore PNB scam perpetrated by diamond merchant and jeweller Nirav Modi, CBI has arrested Gokulnath Shetty then Dy Manager (now Retd) Punjab National Bank and Manoj Kharat, SWO(single window operator) PNB and Hemant Bhat, Authorised Signatory of the Nirav Modi Group of Firms. They will be produced today before CBI special court in Mumbai.

An FIR was registered against two Punjab National Bank (PNB) officials over the fraud with the bank on Friday. The case was registered against Gokulnath Shetty and Manoj Kharat. The F.I.R. said Shetty and Karat in connivance with accused companies defrauded PNB to the tune of USD 754.92 millions.

It further added: The fraud was done in matter of issuance of unauthorised and fraudulent Letters of Undertaking in favor of foreign branches of Indian based banks and purported Foreign Letters of Credits in favor of foreign suppliers of accused companies. Earlier in the day, eight PNB employees were suspended on Friday.

The number of suspended employees now stands at 18, which also includes General Manager level officers. Internal investigation of the bank is still underway.

Celebrity jeweller Nirav Modi and his business associate Mehul Choksi are embroiled in the PNB fraud case. While Nirav Modi owns brand ‘Nirav Modi’, Choksi owns Gitanjali Gems. The PNB has lodged two financial fraud complaints of Rs. 11400 crore and Rs 280 crore against Nirav Modi, his family members and Mehul Choksi. The CBI filed a formal case charging four, Nirav Modi, his wife Ami, brother Nishal and Mehul Choksi on January 31 over Rs. 280 crore fraud.