MUMBAI: A Central Bureau of Investigation (CBI) court in Mumbai on Sunday issued a non-bailable warrant against diamond jeweller Nirav Modi and his uncle Mehul Choksi in connection with the multi-million Punjab National Bank (PNB) fraud.
In February 2018, it had emerged that the fraudulently issued Letters of Undertaking (LoUs) from the Mumbai branch of PNB in favour of Hong Kong branches of Allahabad Bank and Axis Bank. These letters helped facilitate Rs 280.7 crore fraud by jewellery designer Nirav Modi among others.
As per the FIR lodged with the CBI, Shetty and Kharat had transmitted SWIFT instructions to the above-mentioned banks for raising buyers credit and for funding the Nostro accounts of PNB, without due procedure. The LoUs were issued on behalf of Diamond R US, Solar Exports, Stellar Diamonds.
Nirav Modi and Mehul Choksi – who are at the heart of the scam – are, meanwhile, absconding. A case under Prevention of Money Laundering Act (PMLA) against Modi and other accused has been registered soon after the scam came under the light.
On Friday, the CBI which is probing the alleged Rs 13,000-crore PNB fraud had questioned a former Deputy Governor of the Reserve Bank, H R Khan, in connection with alleged bank fraud cases involving diamond traders Nirav Modi and Mehul Choksi and relaxation of gold import policy by the erstwhile UPA government.
The central investigation agency had on Thursday also interrogated three Chief General Managers and one General Manager of the Reserve Bank of India (RBI) in connection with the PNB scam.