CBI files second charge sheet, names Mehul Choksi

Mehul Choksi

The Central Bureau of Investigation (CBI) yesterday filed a second charge sheet in the PNB scam case. After Nirav Modi, it has now chargesheeted his uncle Mehul Choksi and 17 others, including Usha Ananthasubramanian, then MD and CEO of Punjab National Bank (PNB). The charge sheet was filed under Indian Penal Code sections of conspiracy and cheating, and under relevant sections of the Prevention of Corruption Act, before Special Judge, CBI cases, Mumbai, on the allegation of committing a fraud to the tune of Rs 7,080.86 crore."

The CBI had registered the case on February 15. Officers said then deputy manager of PNB, Brady House branch, Gokulnath Shetty had allegedly obtained illegal gratification from Choksi's company, in exchange for issuing fraudulent Letters of Undertaking (LoUs) and Foreign Letters of Credit (FLCs). They added that the accused, from 2015 to 2017, fraudulently issued LoUs to overseas banks for obtaining buyer's credit, and also issued FLCs in favour of M/s Gitanjali Gems Limited, M/s Gilli India Limited and M/s Nakshatra Brands Limited without any sanctioned limit or cash margin and without making entries in the bank's CBS system.

During investigation, CBI conducted searches at 52 premises and arrested several people. A large number of witnesses was examined and voluminous documents collected during the probe. Investigation also revealed that the fraud was allegedly done in connivance with senior bank officials, who did not implement the circulars and caution notices issued by the Reserve Bank of India regarding safeguarding SWIFT operations, and instead, misrepresented the factual situation to the RBI.

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