PNB scam: Now, Rs 5,280 crore loan to Choksi under CBI scanner

The Central Bureau of Investigation has initiated a probe in connection with Rs 5,280 crore loan given to Mehul Choksi’s Gitanjali Group by a consortium of banks led by the ICICI Bank.

The probe comes in addition to the existing FIR filed against Choksi and his Gitanjali Group of companies.

The fresh investigation, into Rs 5,280 crore loan amount, is separate from the Rs 13,600 crore Punjab National Bank (PNB) fraud which is already being probed by the CBI.

CBI filed a case against Choksi-led Gitanjali group of companies for allegedly defrauding the bank of Rs 4,8886.72 crore. Another PNB complaint raised on February 22 increased the fraud amount by another Rs 1,251.56 crore.

An additional complaint from PNB against the Gitanjali Group emerged, this time around the sum involved amounted to around Rs 942.18 crore.

Meanwhile. a special CBI court in Mumbai today issued a non-bailable warrant against diamond merchant Mehul Choksi.

According to reports, three summons were sentto Choksi on his email address, Choksi neither responded to them nor appeared before the agency.

The prosecution said there was "every reason to believe" that Choksi had fled the country and is in hiding, and that steps are being taken to secure his presence by the issuance of red corner notice by the Interpol.

"...To secure his presence and to pursue the same, an open non-bailable warrant is required against Choksi," the court was told.

It is alleged that the LoUs (Letter of Undertaking) and LCs (Letter of Credit) worth close to USD 2 billion were issued to the companies of accused Choksi and his nephew Nirav Modi from the Brady Road branch of the PNB in Mumbai through SWIFT (Society for Worldwide Interbank Financial Telecommunication) messages.

The messages were allegedly not entered in the banking software of the PNB to bypass surveillance. Several bank employees have been booked for collusion in the case.

Both Choksi and Nirav Modi have been booked in two cases each related to the bank fraud under the Prevention of Money Laundering Act and the Indian Penal Code.

The duo, along with their families, reportedly left the country in the first week of January this year, days before the alleged fraud came to light.

The agency has arrested 19 people so far in connection with the fraud. The Enforcement Directorate (ED) is also conducting an independent probe.

The Central government has claimed to have tracked Modi in Hong Kong and sought his arrest under the 'Surrender of Fugitive Offenders Agreement' with Hong Kong.

(With inputs from agencies)