CBI arrests PNB’s general manager-rank officer in connection with alleged Rs 11,400-crore scam
Officials believe it was during Rakesh Jindal’s tenure at the bank’s Mumbai office that LoUs were issued to the businessman’s company without sanctioned limits.
The Central Bureau of Investigation on Tuesday arrested a general manager-rank officer of the Punjab National Bank in connection with the alleged Rs 11,400-crore scam involving billionaire jeweller Nirav Modi and his uncle Mehul Choksi.
Rakesh Jindal was the chief of the bank’s head office in south Mumbai’s Brady House between 2009-’11. Officials believe during his tenure Letters of Undertaking were issued to Nirav Modi group without sanctioned limits, PTI reported.
Jindal currently serves as the general manager of credit at Punjab National Bank’s head office in Delhi.
Nirav Modi has been booked for fraud and accused of cheating Punjab National Bank. The scam involved bank officials allegedly handing out fake Letters of Undertaking on behalf of companies associated with Modi, which allowed him to access massive foreign exchange loans that were completely unsecured.
Meanwhile, in an email to his employees in India, Modi on Tuesday asked them to look for other jobs because he said he would not be able to pay them after investigative agencies seized the stock of all his companies and his back accounts, the Hindustan Times reported. “The near future is uncertain,” Modi said in the email. “I am also concerned at the speed with which events are moving which make me concerned about the fairness of the processes that are being followed.”
His counsel on Tuesday claimed that the cases against Modi will not stand in the court as there was no evidence to prove any of the charges. “The agencies are making all the noises in the media,” Vijay Aggarwal said, according to PTI. “They will not be able to prove these charges in court. Nirav Modi will not be found guilty, I am certain.”
I-T notice to Congress leader Abhishek Singhvi’s wife
The Income Tax Department on Tuesday issued a notice to senior Congress leader Abhishek Manu Singh’s wife Anita for allegedly buying jewellery worth Rs 6 crore from Modi’s showroom, PTI reported. Anita Singhvi was asked to explain how much she had paid in cheque and in cash to buy the jewellery a few years ago.