The Central Bureau of Investigation has registered a fresh case against retired Punjab National Bank (PNB) official Gokulnath Shetty and his subordinate for allegedly issuing fraudulent Letters of Undertaking (LoUs) for more than ₹9 crore in favour of a Mumbai-based company.
Mr. Shetty and single-window operator Manoj Kharat were earlier arrested for allegedly issuing fraudulent LoUs in favour of the Nirav Modi and the Mehul Choksi group of companies and clearing Foreign Letters of Credit for payments to foreign suppliers. They were posted at the PNB’s Brady House branch in Mumbai.
‘Searches completed’
Among those named in the new FIR are Chandri Paper and Allied Products Private Limited and its directors Aditya Rasiwasia and Ishwardas Agarwal. “Searches have been carried out on the premises of the accused persons,” said a CBI official.
It is alleged that Mr. Shetty and the other PNB employee entered into a criminal conspiracy with the company directors for issuing LoUs for $1.4 million [about ₹9.09 crore] favouring the Antwerp branch of the SBI in Belgium.
The due date of payment for the LoUs was January 20, 2020.
Mr. Shetty retired from service in May 2017.
