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Top PNB official used to ask 'arranger' for his share of pie

Gokulnath Shetty, used to demand his share in the commission the witness used to get from companies for helping them get buyer's credit.

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The Central Bureau of Investigation (CBI) while gathering evidence in the Punjab National Bank fraud case have examined some independent witnesses, one of whom is a dealer in the buyer credit transaction.

The evidence collected says Cuffe Parade branch's deputy manager, Gokulnath Shetty, used to demand his share in the commission the witness used to get from companies for helping them get buyer's credit.

"Shetty asked me to part with a portion of the arrangement fee recieved by me. I was reluctant. However, he prevailed upon me by saying that he would stop the business he had given me. I had to agree to his demands," said the witness in his statement.

The witness met Gokulnath in 2010 when he was working for PNB in Cuffe Parade branch. "I did the first funding for Gitanjali Group in January 2015 and the transaction was done by PNB, Hong Kong branch for 90 days. Thereafter, lots of proposals for Gitanjali Group started coming for 360 days and my job was to organize the most competitive rates from the offshore branches of Indian banks. For this, I was getting 0.05 per cent a year as arranger's fee. All these transactions were given by Gokulnath. In fact, he had told me that I should not directly deal with Gitanjali Group of companies and all dealings with the group would be through him," the statement read.

According to the CBI, Shetty allegedly prepared the SWIFT messages for purported LOU's on behalf of Geetanjali gems, Gili India and Nakshatra brands without sanctioned limit and even without obtaining 100 per cent cash margin. Shetty is allegedly the mastermind and has played a vital role in defrauding PNB in connivance with others.

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