PNB fraud: Searches underway at Nirav Modi's Alibaug farm house; CBI examines bank officials

The Central Bureau of Investigation (CBI) on Tuesday continued searches in connection with Rs 11,400 crore Punjab National Bank fraud involving billionaire diamond merchant Nirav Modi and Mehul Choksi.

The investigation agency has found Nirav Modi's farmhouse in Alibaug near Mumbai which has a palatial bungalow. The searches are underway.

Meanwhile, the agency is also questioning several officials of the bank and executive-level employees of Geetanjali Gems.

So far, the CBI has arrested six officers of Punjab National Bank. 

Nirav Modi has virtually wrung his arms in the air, saying PNB's overzealousness has shut the doors on his ability to clear the dues.

In a letter Modi wrote on February 15/16 to the PNB management, he pegged the amount his companies owes to the bank under Rs 5,000 crore.

"In the anxiety to recover your dues immediately, despite my offer (on February 13, a day before the public announcement, and on 15,) your actions have destroyed my brand and the business and have now restricted your ability to recover all the dues leaving a trail of unpaid debts,"he said.

On Monday, the agency arrested Chief Manager (Forex department) Bechhu Tiwari, Manager Yashwant Joshi and Export officer Praful Sawant who have been sent to police custody till 3 March.

Whereas, last week, the CBI arrested Gokulnath Shetty (retired DGM of PNB), bank's Single Window Operator Manoj Kharat and Hemant Bhat, the authorised signatory of the Nirav Modi Group of Firms.

The Central Vigilance Commissioner KV Chowdary also met senior officials of the bank and the Finance Ministry. The banks officials are understood to have shared with the Central Vigilance Commission (CVC) the details of the action taken by them to deal with the fraud. The CVC has also asked the bank to submit a report in 10 days.

Meanwhile, the Supreme Court has agreed to hear on Friday a plea seeking an SIT probe.

The CBI has already registered two FIRs -- one on January 31 and another a few days ago -- against billionaire diamond merchant Nirav Modi, his relative Mehul Choksi of Gitanjali Gems and others for allegedly defrauding the PNB of about Rs 11,400 crore.