Three directors of Mumbai firm arrested in suspected Rs 4,000 crore fraud

DNA
New Delhi, India Published: Mar 19, 2018, 08:51 AM(IST)

(Representative image) Photograph:( DNA )

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The economic offences wing arrested them as part of ongoing investigations into a bank fraud by Parekh Alluminex Ltd (PAL)

Amid ongoing row over Punjab National Bank fraud, Mumbai police have arrested three directors of a private firm as part of ongoing investigations into nearly Rs 4,000 crore fraud.

According to a report, the economic offences wing arrested them as part of ongoing investigations into a bank fraud by Parekh Alluminex Ltd (PAL).

Bhawarlal Bhandari, Premal Goragandhi and Kamlesh Kanungo were arrested for cheating, forgery, breach of trust and criminal conspiracy, reported Times of India.

The action was taken after a complaint by Axis Bank against the firm for cheating it of Rs 250 crore.

A report said that those arrested on Friday were charged with floating fake invoices and manipulated bills through bogus companies to commit the fraud at the bank’s main branch, Fort, using letters of credit.

Parekh Alluminex Ltd initially availed of three short-term loans totalling Rs 125 crore from Axis Bank, which it repaid to “gain confidence”, said police.

Later, the bank sanctioned a letter of credit to PAL after the company approached the private bank for working capital of Rs 127.5 crore.

In the multi-crore Punjab National Bank (PNB) fraud case, a special CBI court has remanded in judicial custody till March 28 the 11 accused arrested.

The CBI has alleged that the firms controlled by diamond baron Nirav Modi and his uncle Mehul Choksi had obtained fraudulent LoUs and letters of credit (LCs), worth over 13,000 crore from the PNB in connivance with some officials of the bank.

Modi's firms allegedly defrauded the PNB of over Rs 6,500 crore, while Choksi's firms Rs 7,080 crore.

Key accused Gokulnath Shetty (former deputy General manager of PNB), Manoj Kharat (single window operator of PNB) Hemant Bhat (authorised signatory of Modi's company), Bechhu Tiwari (then chief manager in the Forex department of PNB), were produced in the court of Special CBI judge S R Tamboli today.

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