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The CBI has arrested a general manager-rank officer of the Punjab National Bank posted at the bank's head office in New Delhi in connection with the alleged Rs 114 billion (Rs 11,400-crore) fraud involving billionaire jewellers Nirav Modi and his uncle Mehul Choksi, officials said.
Rajesh Jindal, who was the head of the Brady House, Mumbai, branch of the bank during 2009-11, was taken into custody last night, they said.
It is alleged that the issuance of Letters of Undertaking (LOUs) to Nirav Modi group firms without sanctioned limits started during his tenure.
Jindal is presently posted as GM, Credit, PNB Head Office, New Delhi.
It is alleged that Rs 114 billion (Rs 11,400) crore of LOUs were fraudulently issued to the firms of Nirav Modi and Choksi.