PNB fraud: Charge of criminal breach of trust added to FIR

The CBI has alleged that firms controlled by diamond traders Nirav Modi and his uncle Mehul Choksi obtained fraudulent LoUs and letters of credit (LCs) worth USD 2 billion (Rs 12,636 crore) from PNB in connivance with bank officials.

business Updated: Mar 13, 2018 21:43 IST
Press Trust of India
Press Trust of India
Press Trust of India, Mumbai
PNB fraud,Punjab National Bank,Nirav Modi
Enforcement Directorate officials outside a PNB branch after they seized cash, jewellery and bonds worth several crores during a raid in Thane.(PTI File Photo)

The CBI told a Mumbai court on Tuesday that it has added the charge of ‘criminal breach of trust’ to the case related to diamond trader Mehul Choksi’s firms in the Punjab National Bank (PNB) fraud case.

The maximum punishment for the offence under section 409 of the IPC (criminal breach of trust by public servant, or by banker, merchant or agent) is life imprisonment.

Among others, the agency has arrested Gokulnath Shetty, the then deputy manager (now retired) of PNB, in connection with issuance of fraudulent letters of undertaking (LoUs) to Choksi-owned firms.

“The acts of Shetty prima facie disclose commission of offence punishable under section 409 IPC along with other offences already alleged in the FIR,” read the CBI’s submission before the special court.

Earlier the agency had pressed the charge of cheating under the IPC and relevant charges under the Prevention of Corruption Act.

The CBI has alleged that firms controlled by diamond traders Nirav Modi and his uncle Mehul Choksi obtained fraudulent LoUs and letters of credit (LCs) worth USD 2 billion (Rs 12,636 crore) from PNB in connivance with bank officials.

First Published: Mar 13, 2018 21:43 IST