PNB fraud: CBI arrests PNB's ex-Deputy Manager Gokulnath Shetty

The CBI today made the first arrest in the alleged 11,400 crore rupee Punjab National Bank fraud case in which businessman Nirav Modi and his partner Mehul Choksi are accused. The CBI has arrested three people - former Deputy Manager of the bank, Gokulnath Shetty, Single Window Operator of the bank, Manoj Kharat, and the authorised signatory of Nirav Modi group of firms, Hemant Bhat. The three will be produced before a CBI special court in Mumbai.

Meanwhile, massive searches by the Enforcement Directorate that began on Thursday continued on Friday against Nirav Modi, a jewellery designer and main accused in the PNB scam.

Friday saw raids being conducted in Delhi, Mumbai, Surat and Jaipur. Raids by CBI also continued at various places connected with Mehul Choksi. The investigating agency raided 20 locations belonging to Gitanjali group of companies spread across 6 cities in 5 states.

In the raids diamond, gold and jewellery worth 5649 crore rupees have been seized. CBI also registered a case against Mehul Choksi based on the complaint by PNB.

FIR has been filed against 3 companies of Choksi group, Gitanjali Gems, Gili India and Nakshatra Brand Limited. Apart from crackdown by ED, External Affairs Ministry has also tightened its noose around Nirav Modi. It suspended the validity of passports of Nirav Modi and Mehul Choksi for four weeks.

Amidst reports of Nirav Modi slipping out of the country, Interpol has also been alerted. Agencies have issued diffusion notice through Interpol.

As investigations into the fraud continue, PNB has suspended 8 more employees which has taken the number of suspended PNB officials to 18.

Government and the BJP have categorically said strict action is being taken in the case and those guilty will not be spared. BJP has alleged that in 2013 during UPA government's tenure, the finance secretary had received a complaint pertaining to the case but owing to some pressure, no action took place.

BJP also said Congress President Rahul Gandhi visited Nirav Modi's jewellery exhibition in 2013.

The scam involving Nirav Modi and Mehul Chowksi came to light when the PNB said it had discovered fraudulent transactions dating back to 2011. The fraud pertains to issuance of letters of undertaking to three companies associated with Nirav Modi.