In a first, the Central Bureau of Investigation (CBI) examined four officers of the Reserve Bank of India (RBI) in relation with the Rs 13,000 crore fraud at the Punjab National Bank (PNB).
In a first, the Central Bureau of Investigation (CBI) examined four officers of the Reserve Bank of India (RBI) in relation with the Rs 13,000 crore fraud at the Punjab National Bank (PNB). The officials who were examined by the investigative body belong to the foreign exchange department of the central bank, The Indian Express reported. The four officers of the central bank were also questioned about the 80:20 scheme for jewellery imports, the report said.
The officers were questioned on the fraud Letters of Undertaking (LoUs) issued by a few former employees at the Brady House branch of the bank in Mumbai to diamond billionaire Nirav Modi’s firms, the report said.
In the loans issued to Nirav Modi and co-accused Mehul Choksi, the bank didn’t attach an external commercial borrowing form needed to process the loan, The Indian Express reported citing an unidentified official. The arrested bank official Gokulnath Shetty who was retired deputy manager of PNB at its Brady House branch then processed the loans. The RBI officials have to reconcile the data which circle officers of banks share with the RBI, the report said.
The 80:20 scheme was being investigated only in relation with the affairs of Choksi and Modi, the report said citing an unidentified official.
It was on 14 February this year that the bank first reported the scam to the exchanges. It was revealed that a few of the bank officials posted at the Brady House branch of the bank in connivance with billionaire diamond merchant Nirav Modi generated fake letters of credit which helped his firms to loan money from a few foreign branches of the Indian banks. The government soon launched an investigation and appointed CBI and ED on the case. The investigation is still ongoing and the government agencies are trying to bring back Nirav Modi, who has since fled out of the country.