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PNB Fraud | For every Letter of Undertaking, commission was fixed, disclose arrested officials: Sources
The Punjab National Bank officials arrested in connection with the alleged Rs 11,400-crore fraud involving billionaire diamond jeweler Nirav Modi have reportedly disclosed that there was a fixed commission for issuing Letter of Undertaking.
Updated : Feb 18, 2018, 10:07 AM IST
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The Punjab National Bank officials arrested in connection with the alleged Rs 11,400-crore fraud involving billionaire diamond jeweler Nirav Modi have reportedly disclosed that there was a fixed commission for issuing Letter of Undertaking.
State-owned PNB has been rocked by the fraud involving Nirav Modi who allegedly acquired fraudulent Letters of Undertaking (LoUs) from a branch in Mumbai to secure overseas credit from other Indian lenders.
"Arrested bank officials disclosed that for every Letter of Undertaking, a percentage of the amount was fixed depending on what amount was to be sanctioned," reported ANI quoting CBI sources.
Sources also said that the commission in exchange of issuing the LoU was distributed between all employees of PNB involved in it.
The CBI is also probing the involvement and connivance of more staff members and outsiders, including Nirav Modi and Mehul Choksi.
However, the arrested accused are reported not co-operating in the investigation.
On Saturday, the CBI arrested three people -- a retired and a serving officials of Punjab National Bank and an executive of Nirav Modi's company -- in connection with the alleged fraud, and carried out searches at the Brady Road branch of the bank in Mumbai.
A special court in Mumbai today has remanded them in a 14-day custody of the Central Bureau of Investigation (CBI), saying the scam has 'consequences for the economy of the nation'.
On January 31, the CBI registered an FIR against Nirav Modi, his companies and his uncle Mehul Choski.
On Friday, the CBI registered a fresh FIR against Gitanjali Group promoter Mehul Choksi.
The accused in the new FIR include Choksi (Managing Director Gitanjali Gems), Gokulnath Shetty (retired DGM of PNB), Manoj Kharat (then single window officer of PNB), and companies -- Gitanjali Gems Ltd , Gili India Ltd, Nakshatra Brand Ltd, directors of the companies Krishnan Sangameshwaran, Nazura Yash Ajaney, Dinesh Gopaldas Bhatia, Aniyath Shivraman Nair and Dhanesh Vrajlal Sheth.
The CBI has alleged that the new FIR pertains to 143 LOUs worth over Rs 4,886 crore fraudulently issued to three companies of Choksi -- Gitanjali Gems, Nakshatra and Gili -- during the period 2017-18, they said. The agency had earlier registered a separate case involving Rs 280-crore fraud, which has now been expanded to cover LoUs worth Rs 6,498 crore issued to accused companies of Nirav Modi and Choksi.
