Ex-deputy manager of PNB refuses to undergo narco test

Shetty, who was posted in forex department in mid-corporate branch of the bank at Brady House between April 2010 and May 2017, he fraudulently issued 143 letters of understanding (LOUs) and illegally enhanced value of foreign letters of credit (FLCs)

Gokulnath Shetty, former deputy manager of the Punjab National Bank (PNB) arrested in connection with a fraud in the bank, on Wednesday refused to allow the Central Bureau of Investigation (CBI) to conduct his polygraph and narco analysis tests, claiming “the allegations of pecuniary gains are nothing, but assumption”.

Shetty former deputy manager of the Punjab National Bank (PNB) arrested in connection with a fraud in the bank, claimed the prosecution is not seeking these tests for investigation into the LoUs, which is the crux of the matter. (HT FILE)

According to the CBI’s case, Shetty, who was posted in the forex department in the mid-corporate branch of the bank at Brady House between April 2010 and May 2017 (the month he retired), fraudulently issued 143 letters of understanding (LOUs) and illegally enhanced the value of foreign letters of credit (FLCs) in favour of various overseas branches of Indian banks, without following the prescribed procedure. The funds raised for payment of import bills were not utilised for the purpose in many cases, the agency claimed.

In his reply to the CBI’s plea, Shetty claimed the prosecution is not seeking these tests for investigation into the LoUs, which is the crux of the matter. He further claimed that according to the record, the agency has so far probed only six LoUs and the probe into the remaining 137 LoUs is in progress. In such circumstances, Shetty claimed in his plea, the investigation into the pecuniary gains allegedly received by him is not required. Besides, Shetty also cited his health as one of the reasons for his objection. He claimed he has been in jail for the past 18 months, and during his custody, his physical and mental health has further deteriorated.

The CBI also registered a case of disproportionate assets against Shetty and his wife in November last year. As claimed by the agency in the FIR, during the period from April 1, 2011 to May 31, 2017, Shetty and his wife Ashalata, a clerk with the Indian Bank, acquired assets to the tune of Rs. 2.63 crore.

The CBI claimed that before April 2011, the couple owned assets worth Rs. 47.12 lakh, which means the rise in assets was 238.44%.