Nifty99000 100%

Sensex99000 100%

Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
RSS

News

CBI conducts searches at PNB Brady House branch, questions 11 officials

Author: IANS/Monday, February 19, 2018/Categories: Banking & Financial Services

CBI conducts searches at PNB Brady House branch, questions 11 officials

New Delhi, Feb 18 - The CBI on February 18 questioned 11 Punjab National Bank (PNB) officials as well as Vipul Ambani, the Chief Financing Officer of diamond merchant Nirav Modi's Firestar Internationl company, in connection with the multi-crore bank fraud, an official said.

The agency also conducted searches at PNB's Brady House branch in Mumbai, which would continue till February 19. 

The Central Bureau of Investigation (CBI) on February 18 also wrote to all banks and asked them to report any irregularities in Letters of Undertakings (LoUs), days after the PNB complained about fraudulent issuance of LoUs and Letter of Credits (LCs) to companies of Nirav Modi and his uncle Mehul Choksi.

The agency officials questioned PNB officials, Vipul and some other Nirav Modi staff and associates in the Rs 11,384 crore scam in Mumbai for over eight hours. 

Vipul, son of Dhirubhai's younger brother Natubhai Ambani, was called by the CBI to come along with certain documents. 

The PNB officials questioned by the CBI are reportedly suspended by the public sector bank, the official said. 

While the CBI is scrutinising the details of LoUs and Letters of Credit submitted by the Punjab National Bank in the past few days, PNB's head office too has scrutinised its LoUs and submitted a report to the CBI.

The CBI's move comes after the agency on February 17 arrested former PNB Deputy Manager Gokulnath Shetty, single window operator Manoj Kharat and group's authorised signatory Hemand Bhat. 

Gokulnath Shetty made explosive revelations and admitted to unauthorised access to a Level-5 password -- the key for SWIFT software used to issue Letters of Undertaking. He said he shared the password with other individuals, essentially employees and directors of Nirav Modi's company.

An LoU is a guarantee from the bank that should the borrower default on repayment, it will pay back to the original lender.

The scam surfaced when companies of Nirav Modi and Choksi approached the PNB's Brady House branch in January to seek LoU for making payments to suppliers. 
 

Print Rate this article:
No rating

Number of views (100)/Comments (0)

Kavita Giridhar Mallya

IANS

Other posts by IANS
Contact author

Leave a comment

Name:
Email:
Comment:
Add comment

Name:
Email:
Subject:
Message:
x

Videos

Ask the Finapolis.

I'm not a robot
 
Dharmendra Satpathy
Col. Sanjeev Govila (retd)
Hum Fauji Investments
 
The Finapolis' expert answers your queries on investments, taxation and personal finance. Want advice? Submit your Question above
Want to Invest
 
 

Categories

Disclaimer

The technical studies / analysis discussed here can be at odds with our fundamental views / analysis. The information and views presented in this report are prepared by Karvy Consultants Limited. The information contained herein is based on our analysis and upon sources that we consider reliable. We, however, do not vouch for the accuracy or the completeness thereof. This material is for personal information and we are not responsible for any loss incurred based upon it. The investments discussed or recommended in this report may not be suitable for all investors. Investors must make their own investment decisions based on their specific investment objectives and financial position and using such independent advice, as they believe necessary. While acting upon any information or analysis mentioned in this report, investors may please note that neither Karvy nor Karvy Consultants nor any person connected with any associate companies of Karvy accepts any liability arising from the use of this information and views mentioned in this document. The author, directors and other employees of Karvy and its affiliates may hold long or short positions in the above mentioned companies from time to time. Every employee of Karvy and its associate companies is required to disclose his/her individual stock holdings and details of trades, if any, that they undertake. The team rendering corporate analysis and investment recommendations are restricted in purchasing/selling of shares or other securities till such a time this recommendation has either been displayed or has been forwarded to clients of Karvy. All employees are further restricted to place orders only through Karvy Consultants Ltd. This report is intended for a restricted audience and we are not soliciting any action based on it. Neither the information nor any opinion expressed herein constitutes an offer or an invitation to make an offer, to buy or sell any securities, or any options, futures or other derivatives related to such securities.

Subscribe For Free

Get the e-paper free