PNB Fraud Scam: 3 Arrested


Mumbai: The Central Bureau of Investigation (CBI) on Saturday arrested three in connection with the alleged fraud in the issuance of Letters of Understanding (LoU) worth Rs. 11,400 crore from Punjab National Bank (PNB).

Amongst arrested are Gokulnath Shetty, the then Deputy Manager (now Retired) of Punjab National Bank (PNB) and Manoj Kharat, SWO (single window operator) PNB and Manoj Hemant Karat, Authorised Signatory of the Nirav Modi Group of Firms.

They will be produced before the CBI special court in Mumbai here on Saturday. Investigation in both the cases and examination of others is continuing. On Friday, an F.I.R. was registered against two PNB officials over the fraud with the bank.

An F.I.R. was also registered against Gokulnath Shetty and Manoj Hemant Karat. The F.I.R. said Shetty and Karat in connivance with accused companies defrauded PNB to the tune of USD 754.92 millions.

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.