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PNB fraud: Charge of criminal breach of trust added to FIR

Press Trust of India  |  Mumbai 

The CBI today told a that it has added the charge of 'criminal breach of trust' to the case related to Mehul Choksi's firms in the (PNB) case.

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

Among others, the agency has arrested Gokulnath Shetty, the then (now retired) of PNB, in connection with issuance of fraudulent letters of undertaking (LoUs) to Choksi-owned firms.

"The acts of Shetty prima facie disclose commission of offence punishable under section 409 IPC along with other offences already alleged in the FIR," read the CBI's 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.

The CBI has alleged that firms controlled by and his uncle obtained fraudulent LoUs and letters of credit (LCs) worth USD 2 billion (Rs 12,636 crore) from in connivance with bank officials.

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

First Published: Tue, March 13 2018. 20:10 IST