New Delhi, Feb 17, 2018: The Central Bureau of Investigation (CBI) on Saturday arrested three persons, including former deputy manager of Punjab National Bank (PNB) Gokulnath Shetty, in connection to the Nirav Modi fraud case. Gokulnath Shetty is basically from Mulki near Mangaluru but setted in Mumbai presently.
Besides Shetty, Punjab National Bank’s single window operator Manoj Kharat and authorised signatory of the Nirav Modi Group of Firms Hemant Bhat have been arrested. The apprehended will be produced before CBI special court in Mumbai later in the day.
The CBI had reached retired deputy manager’s residence in Malad on Friday but could not find him, following which the agency had said “he was untraceable since few days”.
Shetty and Kharat were the first to be detected as working with Nirav Modi.
Punjab National Bank had claimed that Shetty and Kharat had fraudulently issued LOUs without following prescribed procedure by obtaining required request applications, documents and approval of authorities and without making any entries in the bank’s systems.
The bank said that the two fraudulently issued eight LOUs totalling USD 4.42 crore, equivalent to Rs 280.70 crore, for Hong Kong-based Allahabad Bank and Axis Bank.
The state-run lender added that it is making an "in depth" inquiry to find outstanding LOUs which have not been detected in its system.
Meanwhile, the CBI had registered fresh FIRs against the prime accused Nirav Modi and Mehul Choksi on Friday. The Enforcement Directorate (ED) has seized gold and diamond worth Rs 5,100 crore during searches.
Nirav Modi and Mehul Choksi’s passports were also cancelled for four weeks by the Ministry of External Affairs on Friday. “On the advice of the Enforcement Directorate, the passport issuing authority in the Ministry of External Affairs has suspended the validity of passports of Mr. Nirav Deepak Modi and Mr. Mehul Chinubhai Choksi with immediate effect for a period of four weeks u/s 10(A) of the Passports Act 1967,” said a press release by MEA.