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PNB fraud: CBI examines two SBI officials

IANS  |  Mumbai 

The CBI on Thursday said it is examining two officials of overseas branches of an in connection with its ongoing probe into the Rs 13,500 crore (PNB) fraud case involving and his uncle of the

Two (DGM)-rank officials of the State of (SBI)'s and branches were asked to join the investigation at its Mumbai's Bandra office.

According to (CBI) officials, the bank had issued buyer's credit to exporters of and firms on the basis of Letters of Undertakings (LoUs).

On Wednesday, the CBI had examined two officials of Canara Bank's Bahrain Branch and one from Bank of India's (Belgium) Branch over the role of these branches in extending credit facilities on the basis of LoUs issued by the PNB to the firms related to and

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

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

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 Choksi and others -- has been named in the mega scam, admitted by the PNB in February that led to a massive upheaval in the country's system.

Earlier, a lookout notice was issued by the CBI against Modi and Choksi but they and their associates had fled the country. While Modi and his brother left on January 1, his wife Ami, a US citizen, and Choksi 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 bank to other banks, based on which foreign branches offer credit to buyers -- were fraudulently issued by its officials in connivance with Modi and other accused in the case causing huge losses to the bank.



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

First Published: Thu, April 12 2018. 20:04 IST