LoU fraud: CBI opposes plea seeking to make Punjab National Bank accused

The CBI refuted the argument in a reply filed before special judge JC Jagdale here earlier this week.

Published: 15th February 2019 09:28 PM  |   Last Updated: 15th February 2019 09:28 PM   |  A+A-

PNB_fraud

PNB (File | Reuters)

By PTI

MUMBAI: Punjab National Bank (PNB) was a victim of the alleged fraud committed by fugitive jewellers Nirav Modi and Mehul Choksi and not a beneficiary, the Central Bureau of Investigation (CBI) has told a court here.

The Central agency's reply came in response to an application filed by Nitin Shahi, a former assistant finance manager with Choksi's Gitanjali Group, who is one of the accused.

In his plea, Shahi, who is out on bail, contended that PNB too should be made an accused in the case.

The nationalised bank had earned commission from the alleged fraudulent transactions and it can not play the victim card and feign ignorance now, Shahi said.

Top-level officials of Gitanjali Group as well as PNB have been made accused, but not the bank itself, which is "strange and discriminatory", the plea said.

The CBI refuted the argument in a reply filed before special judge J C Jagdale here earlier this week.

It said the bank had suffered a loss of whopping Rs 7,080 crore in the transactions related to Gitanjali Group alone.

"Gitanjali Group is beneficiary of the transactions, while PNB is a victim which lost money," the CBI said.

The judge is expected to hear Shahi's plea next week.

Nirav Modi and his uncle Mehul Choksi are among the main accused in the scam which is pegged at about Rs 13,000 crore.

They managed to flee the country in the first week of January 2018, days before PNB could detect the fraud which centred around misuse of Letters of Undertaking (LoU) for obtaining credit from overseas branches of Indian banks.

Stay up to date on all the latest Nation news with The New Indian Express App. Download now
(Get the news that matters from New Indian Express on WhatsApp. Click this link and hit 'Click to Subscribe'. Follow the instructions after that.)

Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp