PNB fraud case: The second chargesheet focusses on the Letters of Underakings or LOUs and Foreign Letters of Credit or FLCs of close to Rs. 600 crore of the total loss of over Rs 7,000 crore to PNB by Choksi.
The four senior bank officials named by the Central Bureau of Investigation (CBI) in its first chargesheet in the Rs 13,400 fraud involving diamantaires Nirav Modi and his uncle Mehul Choksi were named again in the agency’s second chargesheet filed on Wednesday.
Other than Usha Ananthasubramanian, MD & CEO of Allahabad Bank, who was a former CEO of Punjab National Bank, two Executive Directors of PNB, KV Brahmaji Rao and Sanjeev Saran and a General Manager Nehal Ahad, the CBI has chargesheeted the arrested accused and the three firms owned by Choksi namely – Gitanjali Gems Limited, Gilli India Limited and Nakshatra Brand Limited.
The second chargesheet focusses on the Letters of Underakings or LOUs and Foreign Letters of Credit or FLCs of close to Rs. 600 crore of the total loss of over Rs 7,000 crore to PNB by Choksi.
Between January and March, the CBI filed three FIRs in the case: against Nirav Modi, Mehul Choksi and Modi’s Firestar Diamonds. The agency has also been able to piece together how funds raised through LoUs and FLCs were routed through off-shore firms which were shown as ‘importers” but are suspected to be shell companies floated by the uncle-nephew duo to reroute it to back to India either to square off the old LoUs or buy properties.