New Delhi/Mumbai: As multiple investigating agency launched simultaneous action in the PNB fraud, the CBI on Monday arrested three more officials of Punjab National Bank’s Brady House branch in Mumbai as part of its investigation into the alleged Rs 11,400 crore scam allegedly involving billionaire diamantaire Nirav Modi and others. The total number of arrests in the case now stands at six. The agency also grilled four senior executives of Nirav Modi’s company.
PNB officers arrested by the CBI on Monday included Bechhu Tiwari, chief manager incharge of forex department, Yashwant Joshi, manager of forex department, and Praful Sawant, officer export. The probe agency suspects that the three were aware of the fraud but did not take measures to stop it.
The agency on Saturday had arrested three persons, including the bank’s retired deputy manager Gokulchand Shetty, suspended single window operator Manoj Kharat and Hemant Bhat, the authorised signatory of the Nirav Modi group, in connection with the case.
As part of the multi-agency action in the case, the ED on Monday seized jewellery worth Rs 22 crore following searches at Nirav Modi’s flat in the posh Samudra Mahal apartments in upmarket Worli in south Mumbai and 38 other locations. The income-tax department attached seven properties of the Gitanjali group and its promoter Mehul Choksi, uncle of Nirav Modi, in Mumbai.
In a related development, Central Vigilance Commissioner K.V. Chowdary met senior officials of PNB and the finance ministry for a briefing by bank officials and action taken by them in the matter. “This is not something that can be discussed in public,” he told reporters when asked about the meeting.
The government has also ordered the Serious Fraud Investigation Office (SFIO) — a specialised unit to probe white collar crimes — to probe around 110 companies and 10 limited liability partnership entities related to Nirav Modi and Choksi, sources said.
On Monday, the CBI also questioned Vipul Ambani, president (finance) of Nirav Modi’s Firestar Diamond, its chief financial officer Ravi Gupta, and executives Saurabh Sharma and Subhash Parab.
Sharing details on the accused arrested on Monday, CBI sources said, “Mr Tiwary, who was arrested on Monday, was responsible for supervising the work of now-retired Mr Shetty and he had full knowledge of the activities of Mr Shetty.”
Mr Joshi was responsible for supervising Mr Shetty and ensure daily reports of Swift entries and he had full knowledge of the activities of the latter but took no action.
Banks across the world use Swift, or Society for Worldwide Interbank Financial Telecommunications, a messaging network for securely transmitting information and instructions for all financial transactions through a standardized system of codes.
CBI sources said that Mr Sawant was responsible for checking the Swift messages daily and preparing the report of the PNB’s branch.
“The agency sleuths decided to arrest the three when they gave conflicting answers during questioning,” sources said.
Fearing the likelihood of sabotage to the data in the PNB’s Brady House branch, CBI had briefly sealed the premises late on Sunday. The step was taken after rummaging through the documents and records. The seal was removed on Monday after a team of CBI investigators landed there around noon.
Investigators are also questioning several bank officials who were posted at the branch during the period when 143 letters of undertaking (LOUs) were issued by the PNB.
Meanwhile, the ED conducted searches at more than 39 locations across India, including 10 in Mumbai and seized valuables worth Rs 22 crore in the multi-crore money laundering case.
The ED is now in the process of ascertaining the market value of the seized items with the help of valuers from other banks. The value of seized items, including diamond-studded jewellery and other ornaments, is expected to be around Rs 5,100 crore.
“The intricate details pertaining to the properties where the raids were conducted will come from income-tax department,” said a senior ED officer.
Seeking to address concerns of other banks, PNB said that it will honour all its “bonafide commitments” under the LoUs and foreign letters of credit (FLCs) in connection the Rs 11,400 crore fraud case. “We will honour all our bonafide commitments under LoUs and FLCs as per law of the land and as per specific existing guidelines of regulator i.e. RBI on LOUs and FLCs,” said PNB.
