Closed office premises of Gitanjali Gems Ltd at Arena House MIDC Andheri ( E)(Express Photo by Amit Chakravarty)
THE CBI on Tuesday arrested Vipul Chitalia, Vice-President (Banking operations) of Gitanjali Group of Companies, in connection with the Punjab National Bank (PNB) fraud. Chitalia had escaped from the country on January 26, before the fraud was reported by the public sector bank.
The CISF detained Chitalia after his flight from Bangkok landed at Mumbai’s Chhatrapati Shivaji Maharaj International Airport in the early hours of Tuesday and handed him over to the CBI.
Chitalia was in charge of the banking operations at Gitanjali and an authorised signatory when the company sought the fraudulent Letters of Understanding (LoUs), the CBI said.
“He was instrumental in preparing the applications for putting through the fraudulent LoUs and Foreign Letter of Credit (FLC)…He is the mastermind for putting through such fraudulent transactions along with Mehul Choksi.
There is every reason to believe that he, alongwith Mehul Choksi, is the brain behind this conspiracy and that crucial and incriminating documents are yet to be recovered which are within the exclusive knowledge of Vipul Chitalia,” the remand application, filed by CBI before the special court, said.
Special public prosecutor A Limosin also submitted that Chitalia was instrumental in hiding the original documents regarding the fraudulent LoUs. The court has ordered for Chitalia to be sent to CBI custody till March 17.
According to a senior CBI official, Chitalia was among the first to flee the country when the accused realised that they were going bust. The official said Chitalia is the connect between Choksi and retired PNB deputy manager Gokulnath Shetty, who has been arrested. “It was on Chitalia’s instance that Shetty prepared the fraudulent LoUs and FLCs. Around October-November last year, when the new management at Brady House branch of PNB expressed reservation on continuing the practices allowed by Shetty, Chitalia feared they would be busted and fled the country.”
Officials said Chitalia’s arrest will also throw light on whereabouts of Choksi. CBI has, meanwhile, rearrested Shetty in a second FIR connected with the fraud. The special court has remanded him in CBI’s custody till March 15 for questioning.
For all the latest India News, download Indian Express App
