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PNB fraud: CBI examines three officials of foreign branches of Indian banks

IANS  |  Mumbai 

The CBI on Wednesday examined three officials of overseas branches of two Indian banks in connection with Rs 13,600 crore (PNB) fraud against diamantaire and his uncle Choksi, an said.

Two of the officials are from Canara Bank's Bahrain Branch and one from of India's Antwerp Branch. They were summoned to join the investigations at the (CBI)'s Bandra-based office.

They were examined over the role of these overseas branches of the two Indian banks in extending alleged credit facilities on the basis of Letters of Undertaking (LoUs) issued by the PNB to the firms related to and Choksi-- the promoter of Gitanjali Group, said CBI sources.

The agency's move comes three days after a special CBI court here on Sunday issued non-bailable warrants against and as both diamond traders, who left the country in January, refused to join the investigation into the scam.

The CBI on Sunday also questioned an who dealt with forex transactions in Allahabad Bank's Hong Kong Branch.

Modi, a regular on the lists of rich and famous since 2013, along with his group companies -- Diamond R US, Stellar Diamond and Solar Exports, uncle and business partner and others has been named in the mega scam, admitted by the PNB in February and leading to a massive upheaval in the country's system.

Earlier, a lookout notice was issued by the CBI against and However, and his associates fled the country before the notices were issued. While and his brother left on January 1, his wife Ami, a US citizen, and left on January 6, all before the CBI received a complaint from the PNB on January 29.

The PNB has claimed in different complaints to the CBI that several LoUs -- issued by one to other banks, based on which foreign branches offer credit to buyers -- were fraudulently issued by its officials in connivance with and other accused in the case causing huge losses to the

--IANS

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, April 11 2018. 21:00 IST
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