CBI questions former RBI deputy governor in PNB fraud case: Sources

The Central Bureau of Investigation on Friday questioned a former Deputy Governor of the Reserve Bank, HR Khan, in connection with alleged Punjab National Bank fraud case worth Rs 12,600 crores (1.9 billion) and relaxation of gold import policy by the erstwhile UPA government, sources said today.

The officials said he was questioned about the UPA government's 20:80 gold import scheme, which was cleared by then Finance Minister Chidambaram on May 13, 2014, barely three days before the counting of votes of the general election.

The CBI, which is probing the PNB fraud involving billionaire diamantaire Nirav Modi and his uncle Mehul Choksi, had yesterday questioned three Chief General Managers and one General Manager of the Reserve Bank of India (RBI), officials said.

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The four senior RBI officials were called on by investigators to help explain banking processes, sources familiar with the matter said on Thursday.

Nirav Modi and Mehul Choksi have been accused of defrauding banks by raising loans from overseas branches of Indian lenders using Rs 12,600 crores of fraudulent guarantees issued by rogue Punjab National Bank staff at a Mumbai branch.

The fraud, which is being investigated by the CBI and other enforcement agencies, is the biggest in the country's banking history.

(With inputs from agencies)