Punjab National Bank officials (PNB) arrested in connection with the fraudulent transaction scam were sanctioned fixed commission for granting Letters of Undertaking (LoU), the Central Bureau of Investigation (CBI) revealed on Sunday. As per CBI sources, arrested bank officials, during interrogation, disclosed that for every LoU, a commission was fixed depending on the amount to be sanctioned as loan. Commission in exchange of issuing the aforementioned document was distributed between all employees of PNB involved in it, the CBI said. Furthermore, the investigative agency stated that the involvement and connivance of more staff members and outsiders, including accused jewellery designer Nirav Modi and relative Mehul Choksi is being probed.
Earlier in the week, PNB detected a 1.77 billion dollars scam in which jeweller Nirav Modi acquired fraudulent letters of undertaking from one of its branches for overseas credit from other Indian lenders. On Friday, three companies of Choksi were named in the CBI’s FIR, namely Gitanjali Gems, Gili India and Nakshatra Brand Ltd. The Enforcement Directorate (ED) has conducted search operations at over 21 locations across India in connection with the case and seized diamonds, gold, precious stones, metals and jewellery worth Rs 25 crore (Book Value). Meanwhile, the ED, earlier today, began raids at a Gitanjali store in Raipur in connection with the aforementioned case.