PNB fraud: CBI questions bank CMD Sunil Mehta over LoUs to Nirav Modi
CBI turns up the heat on Punjab National Bank with the agency questioning the bank's CMD Sunil Mehta and executive director Brahmaji Rao in Mumbai
New Delhi: The Central Bureau of Investigation (CBI) on Saturday turned up the heat on Punjab National Bank with the agency questioning the bank’s managing director and chief executive Sunil Mehta, and executive director K.V. Brahmaji Rao in Mumbai, the agency confirmed.
“The two officials are being quizzed in connection with the Letters of Undertaking (LOU) issued to Nirav Modi. The questioning is currently on in Mumbai and details will be made available only later," said a senior CBI official, requesting anonymity.
While Rao has held the chair since January 2014, Mehta has been at the post since May 2017.
The Punjab National Bank did not respond to emails seeking a response.
The top brass of the bank is being questioned just three days after the CBI quizzed 10 more officials of the bank and arrested a PNB general manager, Rajesh Jindal, on 21 February. “During his tenure at PNB Brady House branch, the practice of issuance of LoUs (letters of undertaking) without sanctioned limits to Nirav Modi group firms had started. He is presently posted as GM Credit, PNB Head Office, New Delhi," the CBI said on Wednesday.
The CBI also confirmed on Tuesday that 10 more officials of the public sector lender, including the bank’s executive directors, were being questioned, without giving out their names.
Till now, the agency has arrested 12 people across the Nirav Modi group, Gitanjali Gems as well as Punjab National Bank.
Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!