NEW DELHI: Zeroing in on the bigwigs’ role in the Rs 11,400 crore Punjab National Bank (PNB) loan fraud case involving diamantaires Nirav Modi and Mehul Choksi, the CBI on Monday questioned three general managers, an executive director and some statutory auditors of the public sector bank.
PNB’s complaint to the CBI had highlighted the role of retired deputy manager Gokulnath Shetty and single window operator Manoj Kharat for the entire scam. However, the CBI has arrested 10 senior bank executives and the firms.
The three GMs at the Brady House branch of PNB in Mumbai were associated with the International Banking Division and Treasury Division of the bank. The division receives daily reports on debits and credits through the Nostro account. The irregular Letters of Undertaking (LoU) and Letters of Credit (LoC) issued by PNB to Nirav’s and Mehul’s firms were encashed and realised abroad through the Nostro account (that a bank holds in foreign currency with another bank) of PNB in arrangement with State Bank of India, Allahabad Bank, Bank of India, Canara Bank and Axis Bank in foreign countries.
The agency has also written to the Chief Vigilance Officers of the five banks asking them to share details of their Nostro accounts with PNB and the expenditure details during the period relating to scam.
“The statutory auditors of PNB were also called by the CBI investigating team in Mumbai and questioned,” CBI spokesperson Abhishek Dayal said. Over 10 fresh Look Out Circulars (LOCs) against senior executives of both firms have been issued. These are in addition to the four issued against Nirav’s wife Ami and brother Nishal, besides Mehul. The agency grilled PNB’s executive director K V Brahmaji Rao for the third consecutive day on Monday.