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PNB fraud case: CBI arrests general manager-rank bank officer

Last Updated 21 February 2018, 05:11 IST
The CBI has arrested a General Manager of Punjab National Bank (PNB) in connection with the Rs 11,344.40 crore fraud case with investigators claiming the practice of issuing Letters of Understanding without sanctioned limits to Nirav Modi firms started under his tenure.

Rajesh Jindal, presently posted as General Manager (Credit) in PNB Head Office in New Delhi, was arrested on Tuesday late night.

"Jindal was holding the charge of Branch Head at PNB Brady House branch, Mumbai during August 2009 to May 2011. During his tenure at PNB Brady House branch, the practice of issuance of LOUs without sanctioned limits to Nirav Modi group firms had started," a CBI spokesperson said on Wednesday.

With this, 12 people -- six PNB officials and six officials of Nirav Modi firms and those belonging to his uncle Mehul Choksi's companies -- have been arrested. On Tuesday in Mumbai, five senior officials of Nirav and Choksi were also arrested.

The latest arrest of another PNB senior official comes at a time some other senior officials caught by CBI are claimed to have putting the blame on retired PNB Deputy Manager Gokulnath Shetty for the irregularities.

Sources said close to 300 LoUs were issued to Nirav Modi firms in the past 7-8 years though the company did not have enough sanctioned limit.

Nirav had earlier shot off a letter to PNB saying the bank has put him in a situation where he cannot repay because all his assets were attached. His lawyer also claimed that he has not fled.

Those prominent members arrested include Ambani, the President (Finance) of Firestar International, Executive assistant and authorised signatory of three accused firms Kavita Mannikar, Firestar group senior executive Arjun Patil and another authorised signatory Hemant Bhat. Choksi's two employees are also under arrest. Gitanjali Group and Nakshatra Chief Financial Officer Kapil Khandelwal and Gitanjali Group Manager Niten Shahi.
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(Published 21 February 2018, 04:52 IST)

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