Mumbai: A special Central Bureau of Investigation (CBI) court on Thursday extended the CBI custody of former deputy general manager Gokulnath Shetty for three days in connection with Punjab National Bank (PNB) scam involving jeweller Nirav Modi.
Initially, Shetty was arrested in the case registered against Modi; however, later the CBI took him into custody in connection with the case of Mehul Choksi, Modi’s uncle, too. After his arrest in the second case he was remanded in CBI custody till March 15, following which he was produced before he court again and the agency sought his further remand.
CBI counsel A. Limosin argued before the court that during the investigation, the magnitude of the fraud has risen from Rs 4,886.72 crores to Rs 6,138.28 crore and is likely to increase further. The CBI remand said, “The main beneficiaries and perpetrators of the fraud, Choksi and other unknown persons, are absconding.” It further added that the wanted accused are highly influential persons of great resources and means. All the perpetrators of the fraud, which includes known and unknown officials of PNB, employees of M/s Gitanjali Gems Ltd and other private persons, inside and outside India, are yet to be identified.
According to the CBI, there is every reason to believe that he along with Choksi is the brain behind the conspiracy and that crucial and incriminating documents are yet to be recovered, which are within the exclusive knowledge of Shetty.
Mr Limosin said that the investigating officers wanted to confront Shetty with important leads that are emerging during the investigation, regarding payment of quid pro quo to public servants, which are crucial to this case.
After hearing arguments, judge R.S. Tamboli extended Shetty’s custody till March 17. According to the CBI, Shetty, a retired deputy manager PNB, allegedly fraudulently issued 143 Letters of Undertaking and enhanced the value of Foreign Letters of Credit.
Jindal moves bail plea
Rajesh Jindal, general manager, credit, at the PNB head office in New Delhi, who was arrested in the PNB fraud case, has moved the bail application before the CBI court. According to CBI, he was arrested after inquiries allegedly established his culpability.
