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PNB fraud: Criminal breach of trust charge added to FIR

Press Trust of India  |  Mumbai 

The CBI today told a special court that it has added the charge of 'criminal breach of trust' to the case related to diamantaire Nirav Modi's firms in the alleged multi-crore (PNB) scam.

The agency had yesterday informed the court it had added 'criminal breach of trust' charge to the case related to Mehul Choksi's firms.

Modi's firms allegedly defrauded PNB of over Rs 6,000 crore, while Choksi's firms Rs 7,080 crore.

The maximum punishment for the offence under section 409 (criminal breach of trust by public servant, or by banker, merchant or agent) of the IPC is life imprisonment.

During the course of investigation, the CBI arrested Gokulnath Shetty, the then (now retired) of PNB, in connection with the issuance of fraudulent letters of undertaking (LoUs) to the firms controlled by Choksi, the promoter of and maternal uncle of Modi.

"The acts of Shetty prima facie disclose commission of the offence punishable under section 409 of the IPC along with other offences already alleged in the FIR," the CBI stated in its submission before the special court.

Earlier, the agency had pressed the charge of cheating under the IPC and relevant charges under the Prevention of Corruption Act in both the cases.

The CBI has alleged that firms controlled by Modi and Choksi obtained fraudulent LoUs and letters of credit (LCs), worth over 13,000 crore, from PNB in connivance with some officials of the

Besides Shetty, the CBI has so far arrested officials of various firms owned by Modi and Choksi besides officials of the PNB.

Modi and Choksi, besides their family members, had left the country in January before the alleged irregularities came to light.

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

First Published: Wed, March 14 2018. 20:00 IST