CBI questions Punjab National Bank general manager in Nirav Modi fraud case

The questioning came a day after the CBI arrested four people -- two employees and an auditor of Nirav Modi's group of companies, and a director of Gitanjali Group of Companies.

Image used for representational purpose. (File | Reuters)

NEW DELHI: The CBI on Monday questioned a general manager of Punjab National Bank (PNB) in connection with the Rs 12,636 crore credit fraud case involving the bank and fugitive diamantaires Nirav Modi and Mehul Choksi.“General manager (treasury) S K Chand of PNB was questioned Mumbai in the Nirav Modi case,” CBI spokesperson Abhishek Dayal said.

Chand is under the CBI scanner for failing to detect the huge outflow of foreign remittances through fraudulent Letters of Undertaking (LoU) and Letters of Credit issued to firms owned by Nirav and Mehul for importing rough diamonds.Agency sources said the CBI is yet to receive any response to the Diffusion Notice issued through Interpol to trace Nirav and Mehul.The agency has arrested 16 persons, including executives of PNB and of Nirav Modi Group and Gitanjali Group led by Mehul.

Manish K Bosamiya, then assistant general manager (operations) and Miten Anil Pandya, then finance manager (both of Firestar International Ltd) were arrested for their alleged role in preparing applications for the LoUs submitted to PNB. Sanjay Rambhia, partner in CA firm Sampat and Mehta; and Aniyath Shiv Raman Nair, then director of Gili India Ltd, a Gitanjali Group firm, were arrested on Sunday.

The CBI on Monday also questioned the director of Kolkata-based firm R P Info Shivaji Panja in connection with Rs 515 crore loan granted by a consortium of 10 banks led by ICICI Bank. Panja was at one time considered close to West Bengal Chief Minister Mamata Banerjee.