PNB fraud: CBI files a fresh FIR against Gokulnath Shetty, bank official1 min read . Updated: 16 Mar 2018, 06:20 AM IST
CBI also named Chandri Papers and its directors, Aditya Rasiwasia and Ishwardas Agarwal, for colluding with Gokulnath Shetty and Manoj Kharat in the PNB fraud
Mumbai The Central Bureau of Investigation (CBI) on 9 March registered a fresh first information report (FIR) against retired Punjab National Bank (PNB) employee Gokulnath Shetty and a single-window operator at PNB’s Brady House Branch in Mumbai, Manoj Kharat, for fraudulent issuance of letters of undertaking (LoUs).
The agency has also named Chandri Papers and Allied Products Pvt. Ltd and its directors—Aditya Rasiwasia and Ishwardas Agarwal—in the FIR. An official familiar with the developments confirmed that the CBI had carried out searches across several locations before registering the FIR.
The agency registered the FIR following a fresh complaint by PNB on 9 March.
“…Gokulnath Shetty and Manoj Kharat entered into criminal conspiracy with Aditya Rasiwasia and Ishwardas Agarwal—the object of which was to defraud PNB to the tune of Rs9.09 crore in the matter of dishonest and fraudulent issuance of two Letters of Undertaking (LoUs) favouring SBI Antwerp (State Bank of India). The due date of payment for the LoUs was January 20, 2020," CBI said in its FIR.
In the complaint, PNB alleged that for the issuance of the two LoUs neither was there any available credit limit to the company nor was a 110% margin retained by the bank.
A letter of undertaking is a service whereby the bank guarantees a customer’s payment obligation of a specified amount to an overseas bank.
Chandri Paper, which deals in wax, lubricants, bitumen in Mumbai, did not respond to Mint’s calls or emails seeking a response.
CBI’s latest FIR comes in the wake of the Rs12,636 crore scam at PNB with jewellers Nirav Modi and Gitanjali gems promoter Mehul Choksi being the prime accused in the scam.
Shetty and Kharat are already facing a CBI probe for fraudulently issuing LoUs and Letters of Credit worth over Rs13,000 crore to the companies of Mehul Choksi and Nirav Modi in the PNB scam.
On 17 February, CBI had arrested Shetty, a former deputy manager at PNB, and Kharat. On 19 February, CBI also sealed PNB’s Brady house branch.
Pertaining to Shetty and Kharat’s role in the PNB scam, the bank in its complaint to CBI on 13 February, said, “they have fraudulently issued letters of undertaking (LoUs), without following the bank’s prescribed procedures… and without making entries in the banking system, avoiding detection of the transactions... transmitted SWIFT instructions to the overseas branches of Indian banks under buyer’s credit."