CBI questions former RBI Deputy governor

NEW DELHI, DHNS: CBI on Friday questioned former deputy governor of RBI Harun Rashid Khan in connection with bank scams, involving diamontaires Nirav Modi and Mehul Choksi, and relaxation of gold import rules during the UPA government.

Khan's questioning comes close on the heels of the quizzing of four senior RBI officials, including three chief general managers, on Thursday.

Khan was made a deputy governor on July 1, 2011, and reappointed in July 4, 2014 for two more years.

He was in charge of financial markets, internal debt management departments, foreign management among others at the central bank.

Sources said Khan is the senior-most former official of RBI to be questioned by the CBI in connection with the Rs 13,000 crore Punjab National Bank scam (PNB).

It is learnt that he has been quizzed about the policy framework when fraudulent Letters of Undertaking (LoUs) were issued by the PNB to Nirav and Choksi.

Questions were also posed to Khan on the notification issued by the RBI on the 80:20 gold import scheme, days before Narendra Modi government assumed power.

The notification came after the then Finance Minister P Chidambaram cleared the scheme, which the BJP claimed was done to benefit Choksi's company and a few others make windfall gains.

Investigators are looking into how Nirav and Choksi reportedly manipulated the policies to their favour.

The CBI and the Enforcement Directorate (ED) have registered multiple FIRs against Nirav, his wife and brother as well as Choksi in connection with the suspected fraud.

Nirav and others had left India in the first week of January and the ED has obtained non-bailable warrants against Nirav and Choksi.