New Delhi: The Central Bureau of Investigation (CBI) has arrested two former Punjab National Bank (PNB) officials, accused in Rs. 11,300 crore scam. The two allegedly helped celebrity jeweller Nirav Modi, key accused in the case, procure letters of undertaking fraudulently from the bank.
On Friday, the CBI had raided Gokulnath Shetty's home in suburban Mumbai for several hours. He is the former deputy manager of the Kala Ghoda branch of Punjab National Bank where the massive scam was unearthed. Manoj Kharat, SWO (single window operator) PNB and Mr Hemant Bhat, an official at the Nirav Modi Group of Firms were also arrested along with Mr Shetty. The three will be produced before CBI special court in Mumbai today.
Punjab National Bank, India's second-largest state lender, said on Wednesday that two junior officers at Mumbai's Kala Ghoda had illegally steered $1.77 billion in fraudulent loans to companies, most of them controlled by Nirav Modi.
On the basis of illegal Letters of Undertaking issued by PNB for Nirav Modi and others, "other banks appear to have advanced money to these customers abroad".