CBI probe uncovers their involvement in scam; court sends them to CBI custody
Nirav Modi
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Officers from the Central Bureau of Investigation (CBI), who are conducting an inquiry into the Nirav Modi scam, arrested two officials of Punjab National Bank and one employee of the Nirav Modi group on Saturday. The three arrested are retired deputy manager Gokulnath Shetty, single window operator Manoj Kharat, and Hemant Bhatt, authorised signatory for Diamonds R US, Stellar Diamonds and Solar Exports, all owned by Nirav Modi. The special CBI court has remanded them in CBI custody till March 3.
According to the CBI, Shetty (now retired) and Kharat, who were posted at the bank's forex department at the Mid Corporate Branch at Brady House, Veer Nariman Road, had fraudulently issued eight Letters of Understanding (LOUs) on February 9, 10 and 14, last year, in favour of Allahabad Bank and Axis Bank, based in Hong Kong. This was allegedly done without following prescribed procedure of obtaining request applications, documents and approvals.
They also didn't make any entries in the bank system to avoid detection of the transactions, and transmitted SWIFT (The Society for Worldwide Interbank Financial Telecommunication is a network that enables financial institutions around the world to send and receive information about transactions in a secure environment) instructions to overseas branches of Indian banks to raise the buyer's credit and fund the accounts of PNB.
Bhatt is also director of around 15 to 16 companies of the Nirav Modi Group and is aware of the modus operandi of the scam. The ED has conducted further searches at 21 locations across India in the case and the total seizure till now is Rs 5,674 crore.
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