PNB Fraud: Dozen of Nirav Modi, Mehul Choksi staff fled India

If you think it is just billionaire Nirav Modi, and his immediate kin, against whom look out circulars have been issued, you are wrong. The Central Bureau of Investigation (CBI) has also issued the circulars against around a dozen of their employees, who started moving out of the country fearing arrest for the ill-doings of their employer.

Even before the CBI could find out their roles in the Punjab National Bank (PNB) scam worth Rs 11,300 crore, these employees slowly started moving out of the country. The look out circulars were issued as and when required and the role and name of the employees cropped up during investigation into the case. When their whereabouts were checked and summons were issued to join the probe, it was found that they had been missing and have fled India already.

Also, the agency grilled three general managers of the international banking and treasury divisions of the Punjab National Bank along with executive director KV Brahmaji Rao. The agency is now questioning Rao for the third consecutive day. The CBI stated that the general managers working with the international division are being questioned as they used to get a daily report of credit and debits of Letters of Undertaking, while managing the nostro account (foreign-currency account that a lender holds with another overseas bank).

The agency also questioned several statutory auditors of the PNB as they wants to find out how they failed to detect the fraud that went on for six years. "It is quite surprising that a few people, including a clerk, could continue issuing letters of undertaking of vast amounts without any checks and balances by auditors," said the agency.

They also searched the Mumbai office of a law firm, Cyril Amarchand Mangaldas, last week, in connection with the scam. This is because, while raiding Nirav Modi's residence, they found many documents of the company dealings were with this law firm.

Further, the CBI wrote a letter to the chief vigilance officers of five banks — the State Bank of India, Bank of India, Allahabad Bank, Axis Bank, Canara Bank — to share all the details of the receipts issued to Modi and Choksi companies.

Further, CBI director Alok Kumar Verma has asked his officers not to sit on complaints on bank frauds and register an FIR immediately. He also an issued a direction to revamp the banking fraud unit and start expediting the complaints.

CBI Order

• CBI wrote a letter to the chief vigilance officers of five banks — the State Bank of India, Bank of India, Allahabad Bank, Axis Bank, Canara Bank — to share all the details of the receipts issued to Modi and Choksi cos.
• CBI director asked officers not to sit on complaints on bank frauds.